Drop in tea production this year leads to 13% price rise

With a drop in tea production this year, the industry has seen a rise in price realization of around 13% for the Assam and West Bengal teas. However, this price rise is not commensurate with the loss of production the industry already had, said Sandeep Singhania, president of the Tea Association of India.

While there is a rise in domestic tea prices, the price on the export front is not encouraging which is down by around 4% to date. It is further observed that while North Bengal witnessed a drop of around 21% in its production has only been compensated with around a 7% price rise, meanwhile Assam has seen a price rise of around 15% as against a crop loss of around 11%, said Singhania.

The crop that has already been lost is primarily of the first and second flush – which are the best quality teas for the year will severely affect the cash flows of the companies.

Singhania said that the industry in Assam and West Bengal has suffered because of the non-receipt of its due subsidy for the developmental work undertaken by it during different plan periods from the Tea Board. The Industry awaits the appeals made before the West Bengal to hand hold the industry with
fiscal incentives.