Tea planters in Assam mentioned that tea trade is struggling for survival because of costs declining beneath the Value of Manufacturing (CoP).

Bidyananda Barkakoty, Adviser, North Japanese Tea Affiliation (NETA), “On one hand the value realisation of tea is decrease by Rs. 44.19 per kg, which is about 18% decrease in comparison with final yr and however, the price of Manufacturing (CoP) has gone up because of hike in wages and inputs. CoP has gone up by Rs. 25.00 per kg of made tea because of current hike in day by day money wage from Rs 167.00 to Rs 205.00. CoP has additionally gone up by Rs. 7.00 per kg of made tea because of improve in price of inputs like fertilizer, pesticides, diesel, pure fuel, coal, transportation and so on. Due to this fact, the web detrimental affect on the trade until date is to the tune of Rs.76.00 per kg of made tea.”

“The common value realisation of CTC tea on the Guwahati Tea Public sale Centre (GTAC) this yr, from April to July, is Rs. 208.02 per kg, whereas it was Rs. 252.21 per kg throughout the identical interval final yr. Due to this fact, the common value realisation this yr is decrease by Rs. 44.19 per kg. Solely about 9% teas have fetched above Rs. 300.00 per kg and about 51% of teas have gotten offered beneath Rs.200.00 per kg.”, mentioned Sunil Jallan, Chairman, NETA

“Furthermore the unsold amount at GTAC is greater than double in comparison with final yr. In 2020, the unsold amount at GTAC from April to July was 16.37%, whereas this yr, the unsold amount is 35.16%”, mentioned Jallan

“Assam’s complete manufacturing in 2021, from Jan to June, is much less by about 41 million kgs, which is about 19% much less in comparison with identical interval in 2019. Manufacturing of 2020 was an aberration because of Covid-19 induced lockdown. In 2019, from Jan to June, tea manufacturing was 220.11 million kgs whereas this yr it’s 179.32 million kgs.”, mentioned Kamal Jalan, Vice Chairman, NETA

“Rise of imports within the first quarter of this yr is detrimental to the home tea sector. Non availability of information regarding the break-up of imports for re-exports is an space of nice concern”, mentioned Jalan.

The State Govt is doing its greatest to assist the struggling tea trade by lately saying the scheme “Assam Tea Industries Particular Incentive Scheme (ATISIS – 2020)”. The Inexperienced leaf cess exemption for 3 years wef 1
st Jan, 2019 has additionally been useful for the tea trade. However except there may be rise in value of tea the tea trade together with the Small Tea Growers (STGs) should wrestle for survival”, mentioned Barkakoty.

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