Tea production in India has taken a serious beating in 2024. Assam has witnessed an 11 percent fall, and West Bengal has recorded a 21 percent fall. Till July according to data provided by the Tea Association of India.
The association attributed the fall to a combination of factors. Inadequate rainfall coupled with excessive heat until May hampered production, which was followed by heavy rainfall in June and July. “The production figure of the North Indian tea industry reflects a precarious state of affairs due to insufficient rainfall and excessive heat until May, and excessive rainfall in June and July,” the association said.
The final nail in the coffin, critical attacks by various pests and diseases have also spread to the tea bushes of both West Bengal and Assam, hence creating critical losses of crops in the next few months. According to the reports from its members’ tea estates, the production of West Bengal is behind by about 10 percent. While the estate production in Assam is behind by approximately 3 percent as of August 2024 compared to the previous year.
It also estimated a production loss of 160-170 million kgs in 2024. Due to the early closure of operations and revised crop estimates. While the prices of North Indian teas have gained 13 percent. The increase has not effectively offset the shortfall in production. Though a 21 percent crop loss in the North Bengal region has triggered only a 7 percent rise in price. Assam is charging a price that is 15 percent higher even after an 11 percent fall in its production.
The above association said, “There is a drop of around 13 percent in price realization with the drop in production in North India. However, this is not sufficient to fill up the loss in production suffered by the industry.”
Moreover, delayed subsidies and growing costs of vital inputs like wages and food grains are seriously affecting the tea industry. All these financial pressures are blowing up the problems of the industry. The industry is hence crying for more support from the government.
Sandeep Singhania, President of the Tea Association of India, said: “The industry awaits the appeals made to the Government of West Bengal for fiscal incentives. While we are grateful to the Government of Assam for extending fiscal support, we seek similar consideration for food grains. The industry is burdened by escalating food grain prices in the open market.”
All in all, it leaves the tea industry with a very uncertain future. As it struggles through inclement weather, a shortage in production, and high input costs. The fact that the industry is knocking on the doors of the government for a bailout reflects the urgency to support and sustain tea production in India.
ANI