Challenges Mount as Assam Tea Industry Faces Decline in Production and Prices

In a concerning development for Assam’s tea industry, the Tea Board of India reported a decline in both tea production and prices in 2023 compared to the previous year. Tea production in Assam during 2023 decreased by approximately 13 million kg, signaling new challenges for the industry. Additionally, the average prices of Assam Tea witnessed a drop 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).

Despite initiatives by the Assam government, such as interest subvention on working capital loans, subsidies on Orthodox tea production, and an agriculture income tax holiday, industry experts believe these measures may not be sufficient to rescue the declining tea industry. To counter the challenges, there is a call for increased domestic consumption and exports of Assam tea.

A Tea Board of India study revealed that per capita tea consumption in India is 840 gm, with a target of 1 kilo for per capita domestic consumption. Experts emphasize the need to boost exports to major importers like Iran and transform tea into a lifestyle drink for the younger generation. The suggestion of cricketer MS Dhoni as a potential brand ambassador for Assam Tea has been highlighted, with the final decision left to the government. The industry stakeholders stress the urgency of comprehensive measures to revitalize the sector and alter tea consumption patterns in the country.