Tea Association of India flags a strange phenomenon
Tea Association of India (TAI) stated that the strange phenomenon of drop in crop production with no concomitant rise in prices is in stark contrast to the 2020 scenario when drop in production due to covid closure caused a sharp rise in realization of tea prices.
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Prabir Kr. Bhattacharjee Secretary-General Tea Association of India stated that data released by Tea Board of India indicates a drop of production of around 40% in Assam and around 23% in West Bengal up to the month of March 2024 as against last year during the same period.Due to lack of rainfall and high temperatures the region has witnessed significant wilting of tea bushes, which indicates further crop loss in the coming months. It is estimated that if sufficient and well distributed rainfall is not received immediately, the crop loss may be in a tune of over 50% in the coming months.
He added while the average rainfall in both Assam and West Bengal was significantly low in the month of February this year as against last 5-6 years, the data published by India Meteorological Department for the period 1st March to 13th May has shown significant less rainfall in the tune of 2% to 76% in the major tea growing districts of Assam and West Bengal as against normal rainfall received by the districts during the same period. Since, Tea is a rain fed crop, not receiving sufficient rain during these important months hampers the production of its premium first flush and second flush during this time and loss of crop during this period will severely affect the cash flows of the companies.
