Sweltering heat with less than adequate rainfall in the Brahmaputra Valley Assam and West Bengal have adversely impacted production. 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.
Tea prices in 2024 as per available Tea Board data for the period January-March have continued the declining trend across all auction centres in India, aggravating the financial stress of tea producers. Prices have declined by more than 16 per cent in the period January – March 2024 compared to the same period last year.
Both North and South India prices took a severe beating in 2023-24. The average All India auction prices declined by Rs 14.81 per kg for the period 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 margins of a vast majority of companies are sharply declining which is reflected in their balance sheets. The situation in Darjeeling is more precarious given the declining yields and prices.
Influx of teas from Nepal adds to Darjeeling’s woes. Without a financial relief package, the survival of the industry in Darjeeling stands challenged. The Indian Tea Association has urged the government to extend a financial revival package to the Darjeeling tea sector which was endorsed by the Parliamentary Standing Committee on Commerce in its 171st Report.
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