Kolkata (West Bengal) [India]: Tea production in the country has declined significantly in 2024, with Assam recording an 11 per cent drop and West Bengal seeing a 21 per cent decline up to July, according to data from the Tea Association of India.
The association attributed the decline to insufficient rainfall and excessive heat until May, 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 reflects a precarious state of affairs, consequent to the constant onslaught of insufficient rainfall and excessive heat till May, and excessive rainfall in June and July,” the association stated.
As per the association, the situation has been further aggravated by severe pest and disease infestations, weakening 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 indicate that West Bengal is estimated to be about 10 per cent behind in production, while Assam estates are lagging by around 3 per cent for August 2024 compared to last year.
It also expressed concerns over the projected loss of 160-170 million kilograms of tea in 2024 due to the early closure of operations and revised crop estimates.
The association noted that while North Indian tea prices have risen by 13 per cent, the increase has not been enough to offset the production shortfall. North Bengal’s 21 per cent crop loss has only resulted in a 7 per cent price rise, while Assam has seen a 15 per cent price increase despite an 11 per cent production drop.
“With the drop in production, the industry has seen a rise in price realization of around 13 per cent in North India, however this rise in price is not commensurate with the loss of production the industry already had,” said the association.
Adding to the challenges, the industry is also grappling with delayed subsidies and rising costs for essential inputs like wages and food grains. With these growing financial pressures, the tea industry is facing an uncertain future, and the association has intensified its calls for government support.
“The Industry awaits the appeals made before the Govt. of West Bengal to hand hold the industry with fiscal incentives. The industry while grateful to the Govt of Assam for extending fiscal incentives, craves for a similar consideration on the food grains front as huge burden is being imposed on the industry due to escalating food grain prices in the open market” said Sandeep Singhania, President, Tea Association of India.