Tea garden workers pluck fresh tea leaves from a tea garden, at a tea estate in Darjeeling. File
| Photo Credit: ANI

The Indian Tea Association (ITA) on May 10 reiterated its plea for financial assistance from the Centre to support the struggling Darjeeling tea industry.

According to the ITA, the situation in Darjeeling is critical due to decreasing yields and plummeting prices.

Without a financial relief package, the survival of the Darjeeling tea industry is in jeopardy, the association said, adding that it has urged the government to consider and act upon a financial revival package endorsed by the Parliamentary Standing Committee on Commerce in March 2022.

“The association has urged the government to extend a financial revival package to the Darjeeling tea sector which has been already endorsed by the Parliamentary Standing Committee on commerce in March 2022. This awaits consideration and action”, the ITA said.

The ITA, quoting Tea Board data, highlighted that adverse weather conditions have affected tea production in Assam and West Bengal, leading to a significant decrease in production.

From January to March 2024, production was down by 13.69 million kg at 96.10 million kg across the country, according to Tea Board data. Prices at the auctions have also taken a beating during the same period, the ITA said, adding that at an all-India level, auction prices were down by ₹16.08 per kg at ₹128.12.

Meanwhile, tea exports from India during January to December 2023 fell to 227.91 million kg as compared to 231.08 million kg in the same period of 2022, adding to the industry’s challenges, the ITA said.

Export of tea from the South registered 2.25 % decline to 37.33 million kg (January-June 2023) from 38.19 million kg.
| Photo Credit: DANIELRAO

Indian tea exports in the first six months of calendar 2023 saw a slight dip in volume compared with the year-earlier period.

Data shared by the United Planters Association of Southern India (UPASI) show overall tea exports between January and June this year slid 0.8% to 96.3 million kg this year.

North India exported 59.16 million kg, which is 0.12 % higher than the same period last year.

However, export of tea from the South registered 2.25 % decline to 37.33 million kg (January-June 2023) from 38.19 million kg (January – June 2022).

Worldwide, tea exports have seen a decline, including shipments from major producers such as Kenya, China, and Sri Lanka, said Sanjith Nair, secretary general of UPASI.

Tea production in India in January-July rose 0.1 % to 622.7 million kg, according to provisional data with the Association.

India exports almost 17 % of the tea produced. “It needs to focus more on production and export of orthodox tea as world demand is more for those teas. Currently, though just 9.56% of Indian production is orthodox tea, it constitutes 47% of exports,” he said.

The government should look at addressing structural issues and extend WTO-compatible incentives. It should also increase support extended under Remission of Duties or Taxes on Export Products Scheme, he said.