Assam tea industry faces challenges as production and prices decline

 Staff Reporter

Guwahati: Compared to the previous year, Assam’s tea production as well as the prices declined in 2023, which is not a good sign for the Assam tea industry as a whole and the scenario has thrown up new challenges.

According to Tea Board of India reports, production of tea in Assam during 2023 decreased by around 13 million kg as compared to the production figures for 2022.

On the other hand, prices of Assam Tea in 2023–24 declined by an average of Rs 3 per kg at the Guwahati Tea Auction Centre (GTAC) and Rs 10 per kg at the tea auction house in Kolkata (Calcutta Tea Traders Association). In 2022–23, the average price of Assam Tea at GTAC was Rs 191 per kg, whereas in 2023–24, the price came down to Rs 188 per kg. The price of Assam Tea at Kolkata’s tea auction house during 2022–23 was Rs 216 per kg, which came down to Rs 206 per kg in 2023–24.

Sources said that despite some initiatives adopted by the Assam government for the tea industry, they were deemed not enough to rescue the industry. If steps are not taken to increase domestic consumption and export of Assam tea, the industry will face darker days.

Some of the initiatives taken by the Assam government include an interest subvention on working capital loans, a subsidy on Orthodox tea production, an agriculture income tax holiday, etc.

Sources said that according to a Tea Board of India study, the per capita consumption of tea in India is 840 gm. The target for per capita domestic consumption should be 1 kilo. Along with this, steps should be taken to increase the export of tea to Iran, the highest importer, the sources maintained. Moreover, the government should attempt to make tea a lifestyle drink for the younger generation. India being a country of youth, this would make a big difference in tea consumption patterns.

Bidyananda Borkakoty, who is closely associated with the tea industry in Assam, told The Sentinel, “We conducted a survey regarding the perfect choice for the brand ambassador of Assam Tea to boost its popularity. After considering various personalities, including celebrities, as the perfect choice for the brand ambassador, the name that emerged on top was that of MS Dhoni. But it is up to the government to choose the brand ambassador.”

 Also Read: Assam: Tea production declines in November and December

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