Tea Industry Seeks Collaborative Action for Upcoming Challenges

GUWAHATI: The Tea Association of India (TAI) has expressed worry over the significant issues the industry is currently facing in Assam and North Bengal as a result of unfavourable weather conditions, sluggish local and foreign markets, and their significant effects on the sector.

Therefore, to address the issues the industry is facing, the association—which speaks for the two regions' tea producers—has asked for coordinated action from all interested parties.

“All stakeholders, including tea producers, industry leaders, retailers, government bodies and experts need to come together and collaborate to find innovative solutions. We must prioritise sustainable practices, diversify markets and develop adaptive strategies to overcome these challenges,” the association’s president Ajay Jalan said.

“By fostering an inclusive dialogue and sharing best practices, we can ensure the long-term sustainability of the tea industry and the livelihoods of those dependent on it,” Jalan added.

Assam and North Bengal's tea industries are currently struggling with the negative consequences of climate change, it should be highlighted.

The quantity and quality of tea production have been severely hampered by unpredictable weather patterns, harsh temperatures, and a lack of rainfall.

The sustainability and production of tea gardens are severely threatened by the changing climate, prompting the adoption of quick action plans to adapt to and lessen the effects.

Approximately 80% of India's total tea output, according to official statistics, is produced in Assam and North Bengal.

The business is also dealing with weak demand in both the domestic and foreign markets in addition to climatic problems.

The decline in demand for Assam and North Bengali tea has been attributed to a number of factors, including the overstock of tea on the world market and changing consumer preferences.

“The Tea Association of India remains steadfast in its commitment to supporting and advocating for the tea industry in Assam and North Bengal. We will actively engage with government authorities, industry partners and other stakeholders to address the critical issues at hand,” TAI general secretary Prabir Bhattacharya said.

“Through focused initiatives, research and partnerships, we aim to foster a conducive environment for the growth and prosperity of the tea industry,” Bhattacharya added.

In order to help the tea sector through these difficult times, he urged the different state governments, policymakers, market participants, and consumers to work together.

India's tea sector has been experiencing difficulties for a number of years, including increased input costs, sluggish prices, and relatively flat consumption. Cost-intensive, with fixed costs accounting for 60–70% of overall investment in the tea industry.

About 1.2 million people are employed by the tea industry in India, which accounts for 23% of global production.Price stagnation, high production costs, and low productivity have been the greatest problems for Assam's tea sector.

Under the Assam Tea Industry Special Incentive Scheme 2020, the Assam government earlier this year gave cash incentives totaling Rs 64.05 crore to 370 tea gardens. The state government developed the plan to lessen the COVID-19 pandemic's negative effects on the tea industry.

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