The Indian Tea Association (ITA) has urged the government for extending financial revival package to the Darjeeling tea sector, which was endorsed by the parliamentary standing committee on commerce in its 171st report. This awaits consideration and action, said ITA secretary general Arijit Raha.
Such a decision was taken having failed to produce tea up to the mark due to sweltering heat with less than adequate rainfall required for tea plantations in the Brahmaputra Valley Assam and West Bengal.
“Heavy rain coupled with thunderstorm and hail across several tea estates in Barak Valley Assam during the entire month of April has left planters in the region worried about second flush teas and overall production scenario,” said an ITA official today.
The situation in Darjeeling is more precarious given the declining yield and prices. Influx of tea from Nepal adds to Darjeeling’s woes. Without a financial relief package, the survival of the industry in Darjeeling stands challenged, according to him.
According to ITA officials, as per data released by the Tea Board, north India tea production for the period January to March, 2024 was down by more than 21 million kg, while all India production was lower by more than 13 million kg. The West Bengal production was lower by 7.52 million kg.
Both north and south India prices took a severe beating in 2023-24. The average all India auction price declined by Rs 14.81 per kg from April to March 2023-24.
The Bharat Auction model introduced in April 2023 could not ensure fair price discovery forcing the industry to revert to the English model in November last year, the ITA has claimed in its press release.
Significantly, auction prices in 2023-24 for Kolkata was lower by 115.58 per kg and Siliguri was lower by 17.42 per kg.