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Tea factories remain closed till July 21 due to payment issue

The tea factories in the Nilgiris have announced to stop operation of the factory from 15th July 2017, due to the payment settlement issue between the buyers and sellers. After the implementation of GST, the large tea buyers have been demanding to use old transaction method between buyers and sellers via the brokers.

As the tea producers have objected to the payment system being made through the brokers, the large tea buyers have stopped the purchase of tea from the sellers. This has led to the stagnant of almost 60 lakh kg of tea in the factory warehouse and reduction of tea price.

The Nilgiris Tea Leaf Manufacturers Association has announced to shut down the operations of the tea factories till July 21, 2017. In order to resolve the issue, Mr. C. Paulrasu, Executive Director of Tea board, has arranged for a meeting between the buyers and sellers at the Tea board headquarters in Kolkata and has assured to resolve the issue within few days.