Union Minister for Culture, Tourism and Development of North Eastern Region (DoNER), G. Kishan Reddy with delegates participates in Moonlight tea plucking and tea tasting, in Darjeeling.
Credit: PTI Photo
Kolkata: Leading producers' body Tea Association of India (TAI) said that the industry in North Bengal is passing through a 'serious crisis' which is causing many gardens to close down in the region.
Secretary general of TAI P K Bhattacharjee said that in October 2023, nearly 13 to 14 tea gardens closed down in North Bengal, comprising the Dooars, Terai and Darjeeling regions, affecting more than 11,000 workers.
TAI said the financial crisis which the 300-odd gardens including organised ones and bought leaf factories (BLF) are facing has been aggravated by the hike in interim wages announced by the West Bengal government in April this year. The regions produce around 400 million kilogramme of tea annually.
According to Bhattacharjee, there are around 300-odd tea gardens in North Bengal out of which 15 are closed.
TAI said the industry is facing an abrupt rise in input costs ranging from fertiliser, coal and chemicals while price realisations at the auctions have been far lower.
The association also said that the industry has already had a dialogue with the West Bengal government to help mitigate the financial woes of the industry, particularly during the ensuing winter when plucking is totally stopped at the gardens.
According to TAI, price realisation at the Siliguri Tea Auction Committee in October 2023 was lower at Rs 165 per kilogramme as against Rs 182.81 per kilogramme in the corresponding month of 2022.
Meanwhile, total production across India during September 2023 stood at 162.90 million kilogramme, lower from 195.69 million kilogramme in the previous corresponding month, as per Tea Board data.