Tea industry struggles amid production decline

SNS, SILIGURI, 18 JANUARY, 2025 : "The tea industry is standing at a critical juncture, grappling with production challenges while navigating the dynamics of evolving business models," remarked Deb Mallick, chairman of the Terai Branch Indian Tea Association (TBITA), summarising the turbulent year for north Bengal's tea sector. 

The TBITA secretary Rana Dey echoed these concerns, emphasising the need for strategic interventions to address the mounting challenges. 

As of November 2024, India's total tea production stood at 1,255.4 million kilogram, marking a shortfall of 53.88 million kilograms com- pared to the same period in 2023. Terai's production mirrored this decline, totalling 156.19 million kilograms, with the region facing sharp drops during the first and second flush due to severe pest infestations and erratic climatic conditions. Despite these challenges, the Siliguri Auction saw a modest silver lining. The average price of tea between Sale Nos. 01 to 52 in 2024, including leaf and dust, increased to Rs 189 per kilo- gram, a Rs 25 rise compared to 2023. 

However, the total quantity sold dropped to 134.53million kilograms from 144.15 million kilograms in 2023, underscoring the dual struggle of reduced production and higher operational costs, Mr Mallick said addressing 63rd Annual General Meeting of TBITA. "While price realisation has shown improvement, it is far from sufficient to offset the financial strain caused by lower yields and escalating costs," Mr Mallick pointed out. 

Adding to the discussion, Mr Dey highlighted the grow-ng contribution of Small Tea Growers (STGs), who now account for 54 per cent of north Bengal's total production. "The paradigm shift brought by STGs has reshaped the industry's structure, yet the cost dynamics between the organized sector and STGs remain starkly different," he noted, urging a thorough study of cost structures to address the disparity. 

One of the significant policy developments in 2024 was the West Bengal government's initiative to issue homestead pattas to landless tea garden workers. The https://epaper.thestatesman.com/c/76648794 scheme, introduced through a notification on 1 August, 2023, along with a Standard Operating Procedure (SOP), has seen active discussions at district and block levels. 

TBITA submitted a comprehensive representation advocating for adherence to the SOP and ensuring fair implementation of the scheme for tea garden leasehold lands. 

Reflecting on the year's challenges and opportunities, Mr Mallick concluded, "The survival of the tea industry requires a balanced approach-one that addresses production constraints, cost disparities, and the welfare of workers. 

Collaboration among stakeholders and strategic government intervention will be key to sustaining the sector." 

As the industry looks for- ward to 2025, stakeholders hope for favourable climatic conditions, effective pest management, and robust policy support to navigate the path ahead.