Tea production and prices decline; myriad challenges facing industry

Staff Reporter

Guwahati: In the first tea season this year, the production of tea has gone down, along with the prices fetched at auctions.

In the period from January to March, the targeted tea production was down by 13.4 million kg. In 2023, during this period at the Guwahati Tea Auction Centre, the average price of tea was nearly Rs 145 per kg. But this year, during the same period, the price is Rs 131 per kg. This shows there is a difference of around Rs 13 in the price fetched this year.

According to the Indian Tea Association (ITA), the mood in the tea industry is sombre, with season 2024 having failed to bring cheer to the producers. The increase in heat, with less than adequate rainfall in the Brahmaputra valley, has adversely impacted production. Heavy rain, coupled with thunderstorms and hail across several tea estates in Barak Valley during the entire month of April, has left planters in the region worried about second flush teas and the overall production scenario.

As per data from the Tea Board of India, tea prices in 2024 for the period January-March have continued to decline across all auction centres, including Guwahati.

Sources said that the tea industry is facing challenges due to climate change, fuel price hike, a hike in wages, and a decline in exports to a certain extent. However, the Assam government has announced several initiatives for the tea industry.

ITA sources said the Bharat Auction model, introduced in April 2023, did not ensure fair price discovery, forcing the industry to revert to the English model in November last year. Apart from the situation in Assam, that in Darjeeling is more precarious given the decline in production and prices. The influx of teas from Nepal adds to Darjeeling's woes. The association has urged the central government to extend a financial revival package to the tea sector, which was endorsed by the Parliamentary Standing Committee on Commerce in its 171st report.

 Also Read: Assam: 50% crop damage in Barak tea estates feared (sentinelassam.com)

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