Tea prices may swell as production dips due to bad weather
New Delhi| According to Indian Tea Association data, tea production in the country has declined significantly in 2024. Assam recorded an 11 percent decline in tea production. As of July, tea production in West Bengal has decreased by 21 percent. The association attributed this decline to insufficient rainfall and extreme heat by May. This was followed by excessive rainfall in June and July, which hampered crop production during the current season.
“The production figure of the North Indian tea industry remained in a precarious situation due to continuous inadequate rainfall and extreme heat till May and excessive rainfall in June-July”, the association said According to the association, the situation has worsened due to serious insect and disease infections that weaken tea bushes in both West Bengal and Assam. The association highlighted that this could lead to further crop damage in the coming months.
Reports from tea gardens associated with the association show that tea production in West Bengal is estimated to decrease by about 10 per cent by August. Assam’s plantations could be around 3 per cent behind by August 2024 compared to the previous year. The premature closure of operations and the estimated loss of 160-170 million kilograms of tea in 2024 are also cause for concern.
The association said North Indian tea prices had risen by 13 percent, but the increase was not enough to compensate for the decrease in production. North Bengal suffered 21 per cent crop losses but only increased the price by only 7 per cent. At the same time, while in Assam, production fell by 11 percent and prices registered a 15 percent increase. “On average, prices in North India have increased by about 13 per cent due to decline in production”, the association said. However this increase in price is not in line with the loss of production”
Apart from delayed subsidies, the tea industry is also facing rising costs of essential inputs like wages and food grains. With these increasing financial pressures, the tea industry faces an uncertain future. The association has intensified its demands for government assistance. Indian Tea Association President Sandeep Singhania said, “The tea industry is awaiting a response to the appeal made to the West Bengal government to support the industry with financial incentives”. The industry is grateful to the Assam government for the financial incentives, but similar initiatives are needed in the case of food grains. The rising prices of food grains in the open market are putting a huge burden on the industry.
