Guwahati, Aug. 19: Continuous losses at Hathikuli organic tea estate are forcing the Amalgamated Plantations Private Ltd, the second largest tea company in the country, to review its strategies.

The matter was discussed at the recently concluded ninth annual general meeting of the company in Calcutta.

The company has 25 gardens in Assam and Bengal.

"We are having a rethink on the strategy at Hathikuli because of continuing losses," chairman Ranjit Barthakur said in his speech. Overall, the company faced losses for the second consecutive year because of cost increase on several fronts.

Hathikuli tea estate, situated on the periphery of Kaziranga National Park, is the largest integrated organic farm in the country and produces organic orthodox, CTC and green teas to meet specific customer requirements and has been well received by the market.

Land under tea cultivation at Hathikuli is 474.57 hectares, of the total area of 674.65 hectares. It has been certified organic according to the Indian, US, European Union and Japanese organic agricultural standards. Besides tea, it also grows pepper and has a fishery project too.

"However, we continue to face enormous operational challenges with respect to organic agriculture in Hathikuli. Soil status improvement by increased composting, pest control and improved cultivation practices are a challenge to increase the production levels. Despite these challenges, in order to enhance quality of life of the estate employees, renovations of estate housing and other facilities have continued, as also our effort towards protecting Kaziranga National Park," he said.

The process of organic transformation was undertaken in the garden in 2007 and it was achieved in 2011.

Another official said the accumulated losses are "huge" but the garden will remain organic.

"We are open to strategic partnerships in looking for solutions to organic control of pests and weeds are concerned but at the same time will also look to be commercially viable," he said.

"New initiatives have always have problems and needs to be resolved," he said.

Currently, the company said the industry is passing through a phase where costs broadly exceed earnings and the challenge is to find ways to reverse the trend.

The company said the formation of new governments in Assam and Bengal gave it hope to pursue the Unified Tea Policy with greater momentum and refocus on progressive and contemporary rural and agricultural initiatives/measures that would help in enhancing wealth for all sections of the rural population.

"These initiatives are also being discussed at various levels within the industry to achieve a consensus. The Unified Tea Policy seeks far-reaching changes to current mandate/practices, which it is hoped would help extricate us from the deep structural and operating challenges besetting us," Barthakur said.

Another official said when the company had started the organic initiative in Hathikuli, the challenges were not known to them. "We now know of the challenges and are working on it. But it will take another two to three years to be on track."