Photo Courtesy: India Today Group
Guwahati: North Indian tea growers are facing a financial crisis. Prices at major auction houses dropped by as much as 17 percent between July and mid-August, putting the sustainability of the sector at risk. Tea Association of India (TAI) president Shailja Mehta blamed a mix of flash floods, extreme heat, and heavy pest damage for the production slump. The industry is bleeding.
Data shows that prices at the Calcutta Tea Traders Association plunged from Rs 291.27 to Rs 238.77 per kilogram between Sale No. 26 and Sale No. 34. The Guwahati Tea Auction Centre saw a 15 percent drop, while the Siliguri Tea Auction Centre prices fell 8 percent. This price collapse comes despite a modest 5 percent increase in supply earlier in the year.
Mehta said, "The auction price figures of north Indian tea industry recently reflect a precarious state of affairs in the industry, coupled with the onslaught of flash floods, excessive heat and severe pest and disease infestations hampering production of the crop during the current cropping season."
Production hit a wall in July with an 8 percent decline reported across TAI member estates. Experts expect a similar drop for August. The region anticipates a total shortfall of 8 million kilograms by the end of the month as tea bushes struggle to recover from recent flooding. Meanwhile, export numbers are down 18 percent compared to the same period last year, worsened by ongoing geopolitical instability. Planters also face a crushing reality: rising input costs, higher wages, and steep bonus payouts are eating away at the thin margins left behind.
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