Tea production in Assam records huge decline

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Guwahati, November 12: A recent finding has triggered fears of lower tea production in India this year. A 44.17 million Kg drop in September with Assam in the lead, suffered a 30.4 million Kg decline in production this year. The steep decline has been attributed to heavy rains.

Assam accounts for nearly half of India’s tea output, while West Bengal’s Dooars region and the tea producing states in South have a contribution of 25 percent each. The scope for recovering the entire loss is very limited, although a partial recovery was reported in October from Assam. The advent of early winter has also compounded matters as this may cut short the production cycle by at least a fortnight, an ITA Press release said.

Though tea prices have gone up by 2 percent in 2017, it is considered inadequate by the industry due to rising costs of production. McLeod Russel India Ltd., one of the world’s largest plantation companies said that tea prices had risen due to demand in domestic and export markets and lower production. It said prices will remain higher on the expectation of growth in rural demand after a good monsoon. However, the year’s costs would be higher due to increase in wages and inputs.

Edited by: Arnab Jyoti Das