There has been a significant decline in tea production in the country. In Assam alone, there has been an 11 percent decline in production. These figures have been released by the Tea Association of India. On the other hand, a 21 percent decline has been observed in West Bengal till July. The association attributed this decline to insufficient rainfall and extreme heat till May, followed by excessive rainfall in June and July, which hampered crop production during the current season.
The association said, “The production figures of the north Indian tea industry reflect a precarious situation, due to persistent inadequate rainfall and extreme heat till May and excessive rainfall in June and July.” According to the association, the situation has worsened further due to severe pest and disease infestation, which has weakened the tea bushes in both West Bengal and Assam.
The association highlighted that this could lead to further crop losses in the coming months. Reports from member tea estates show that production in West Bengal is estimated to be down by about 10 per cent, while Assam estates are behind by about 3 per cent compared to last year for August 2024. It also expressed concern over the estimated loss of 160-170 million kg of tea in 2024 due to premature closure of operations and revised crop estimates.
The association said that the prices of north Indian teas have increased by 13 per cent, but this increase is not enough to compensate for the loss in production. Prices have increased by only 7 per cent in north Bengal due to 21 per cent crop loss, while Assam has seen a 15 per cent increase in prices despite an 11 per cent production drop. “With the drop in production, the industry has seen an increase in price realisation of about 13 per cent in north India, although this increase in price is not commensurate with the production loss already incurred by the industry,” the association said.
Apart from the challenges, the industry is also grappling with delays in subsidies and rising costs of essential inputs like wages and food grains. With these mounting financial pressures, the tea industry faces an uncertain future, and the association has stepped up its demands for government support. “The industry is awaiting the appeal made to the West Bengal government to support the industry with financial incentives. The industry is grateful to the Assam government for providing financial incentives, but it is seeking similar consideration in the case of food grains as well, as rising prices of food grains in the open market are putting a huge burden on the industry,” said Sandip Singhania, president, Indian Tea Association.
