The Tea Association of India (TAI) has expressed concern over the decline in prices and drop in production and cautioned that the Tea industry could be heading towards a crisis.
Secretary-General of Tea Association of India, P K Bhattacharya, said there has been a “substantial drop” in tea prices during November in the main tea-growing regions that are the Northeastern part (including Assam) and north Bengal (Darjeeling district and the Dooars region).
The Indian Tea Association is the premier and the oldest organization of tea producers in India. The Association has played a multi-dimensional role in formulating policies and initiating action towards the development and growth of the Tea Industry. The ITA and its branches represent over 60% of India’s total tea production
As of 2019, India was the second-largest tea producer in the world with a production of 1,339.70 million kgs. India is also one of the world’s largest consumers of tea, with about three-fourths of the country’s total produce consumed locally.
The country is home to a wide variety of teas, including CTC tea, orthodox tea, green tea and organic tea. Unlike many other teas producing and exporting nations, India has a manufacturing base for both CTC and orthodox tea in addition to green tea.
Input prices have also seen a steep rise, the planters’ body said. It said the total projected crop in 2021 is 1,330 million kg, a decline from 1,400 million kg in 2020, due to poor weather conditions and pest-related issues.
The total tea export stood at US$ 826.47 million in FY20 and US$ 755.86 in FY21. And the total tea export was US$ 296.21 million from April 2021 to August 2021 and for August 2021 it was US$ 75.38 million.
P K Bhattacharya also said around 28 per cent of the crop is produced between October and mid-December. Coupled with the price decline, wages have also risen – 201 per cent in West Bengal from 2011-2021 and 186 per cent in Assam during the same period, he added.
