40% of Assam tea remains unsold in auction centres this year

STAFF REPORTER

GUWAHATI: In a worrisome development for the tea industry, around 40 per cent of tea produced in Assam remained unsold in the Kolkata, Siliguri and Guwahati tea auction centres between April 1 and June 5 this year. The corresponding figure for unsold tea was 28 per cent during the same period last year.

Tea Board of India officials said that the quantum of unsold tea has increased by 12 per cent for CTC leaf and all dust. The percentage of unsold tea comprises 38 per cent Assam Estate CTC leaf, 45 per cent Assam Estate all dust, 47 per cent Assam Bought Leaf Factory CTC leaf and 53 per cent Assam Bought Leaf Factory all dust. This is a matter of concern in view of the fact that the cost of production of tea is increasing all the time due to factors such increase in price of inputs like natural gas, coal, electricity, pesticide, fertilizer etc. The price of natural gas alone has increased by 120 per cent, the officials said.

Moreover, the tea industry had to buy coal at inflated prices during last year's nationwide coal shortage. Around 50 per cent of tea factories in Assam are coal based, the officials pointed out.

Industry sources said that it is difficult to pinpoint one specific factor for the increase in the percentage of unsold tea. One factor may be that the demand for tea has decreased in the market. Besides, in certain cases the quality of tea may not be up to the mark.

The sources said that if the trend of Assam tea remaining unsold at auction centres continues, then the tea industry may face a serious crisis in the time to come, in spite of the various incentives provided by the State Government in the last two-three years.

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