Tea industry in Assam, Bengal stares at bleak future due to adverse climate condition, drop in export prices

Tea Association of India said gardens in West Bengal reported around 21 per cent drop in production, while the same in Assam was 11 per cent till July, compared to production last year.

Guwahati: Significant crop loss due to adverse climate condition, pest infestation and drop in export prices have pushed the tea industry in Assam and West Bengal towards "an ill-starred future", Tea Association of India, one of the major forums of tea estate owners and traders, said.

Referring to the data released by Tea Board of India, the association said gardens in West Bengal reported around 21 per cent drop in production, while the same in Assam was 11 per cent till July, compared to production last year.

"Due to the unprecedented weather condition, tea growing regions of West Bengal and Assam have witnessed weakening of tea bushes which has further aggravated by severe pest and disease infestation, indicating a further crop loss in the coming months. The crop that has already been lost is primarily of the first and second flush--which are the best quality teas for the year-- and will severely affect the cash flows of the companies," president of the association, Sandeep Singhania, said in a statement.

It said the meteorological data showed that the major tea growing districts in Bengal witnessed 50 per cent to 80 per cent less rain between March and May. The same in Assam was 10 per cent to 30 per cent. However, with the onset of Monsoon on May 30-31, both the states witnessed excessive rainfall. There was a decrease in rainfall again in August, it said. The average minimum temperature also decreased by 1.8 degree Celsius and the average maximum temperature increased by 0.4 degree Celsius in the region during the period, many times reaching 40 degree Celsius.

The association has around 350 planters, factory owners and traders as its members. Assam and Bengal are the highest tea producing regions in the world and provide large numbers of employment in both the industrially backward states.

The association said that with the Food Safety Standard Authority of India's restrictions on use of some pesticides, the tea industry is struggling in its battle against pest control.

"With Tea Board of India revising its crop figure to 1393.66 million kgs from its earlier 1367.70 million kgs for the year 2023 coupled with the early closure order by the Board, the industry is looking at a drop of production to the tune of around 160-170 million kgs during 2024," it said.

"While there is a rise in domestic tea prices, the price in exports is down by around 4 per cent till date."

"With the natural circumstances beyond one’s control, the tea industry in both Assam and West Bengal is looking at an ill-starred future in the days to come and continuous increase in prices of essential inputs including wages and outflow on account of higher bonus in near future will put the tea industry of North India on the rack," said the association.