The typical public sale costs of tea going under the price of manufacturing has left many tea planters and trade gamers in Assam anxious.
North Japanese Tea Affiliation (NETA), a discussion board of over 160 tea planters and manufacturing facility homeowners on Wednesday mentioned the trade was struggling for survival given the truth that common public sale worth of tea this yr decreased by Rs. 44.19 per kg whereas the price of manufacturing went up by Rs. 25 per kg of resulting from hike in wages and supplies.
“On one hand, the worth realisation of tea is eighteen% decrease in comparison with final yr and however, the Price of Manufacturing (CoP) has gone up by Rs. 25 per kg of made tea resulting from latest hike in each day money wage from Rs 167 to Rs 205. CoP has additionally gone up by Rs. 7 per kg of made tea resulting from improve in price of fertilizer, pesticides, diesel, pure fuel, coal and transportation. Subsequently, the online damaging influence on the trade until date is to the tune of Rs.76 per kg of made tea,” NETA adviser, Bidyananda Barkakoty instructed DH.
NETA, a 40-year-old tea producers’ physique mentioned the common worth realisation of CTC tea on the Guwahati Tea Public sale Centre (GTAC) this yr (April to July) was Rs. 208.02 per kg, whereas it was Rs. 252.21 per kg throughout the identical interval final yr. “Subsequently, the common worth realisation this yr is decrease by Rs. 44.19 per kg. Solely about 9% teas have fetched above Rs. 300 per kg and about 51% of teas have gotten bought under Rs.200 per kg,” mentioned Sunil Jallan, chairman, NETA.
With over 800 massive tea estates and hundreds of small gardens, Assam contributes to over 50 per cent of tea produced within the nation. However stagnant costs since 2014, deficit rainfall and the Covid-19 pandemic have crippled the trade.
Assam’s whole manufacturing in 2021, from January to June, is much less by about 41 million kgs, which is about 19% much less in comparison with similar interval in 2019. “Manufacturing of 2020 was an aberration resulting from Covid-19 induced lockdown. In 2019, from January to June, tea manufacturing was 220.11 million kgs whereas this yr it’s 179.32 million kgs,” mentioned Kamal Jalan, vice chairman of NETA.
He mentioned rise of imports within the first quarter of this yr was detrimental to the home tea sector. Non-availability of information regarding the break-up of imports for re-exports is one other space of concern, Jalan mentioned.
The Assam authorities lately introduced a scheme to supply incentives, cess exemption and different advantages to assist the tea trade. However Barkakoty mentioned the trade, significantly small tea growers, would proceed to wrestle until there’s a rise in costs.