Tea export facing crisis due to price drop

Sanila Arjun

2 min read
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It is hoped that the conditions will turn better when the climate becomes more suitable by December.

Representative image | Photo: AFP

Kochi: Due to the fall in the price of tea, India’s tea industry is inching towards a distressed state. There has been a fall in the price compared to 2020. It is hoped that the conditions will turn better when the climate becomes more suitable by December.

When compared to November 2020, the price of tea leaves has gone down by an average of Rs 15 in the country this year. During the last January-October period, the price of one kilogram of tea leaves was Rs 190.09. This year it went down to Rs 172.91, a difference of Rs 17.19.

In North India, the price went from Rs 210.93 to Rs 191.55. In South India, the price went from Rs 130.25 to Rs 119.26.

The hike in prices last year was due to the impact of the Covid pandemic. The prices have fallen this year due to the increase in production.

The tea leaves season starts from October and goes up to mid-December. Almost 28 percent of tea leaves production also takes place during this period. The Tea Trade Association of Cochin informed that the business has been badly affected by the adverse weather.

Almost 20-25 percent of tea leaves production is from the states including Kerala, Tamil Nadu, and Karnataka. Assam and West Bengal top the states in production. With the onset of the winter season, the production will go down in North India and will be halted by mid-December. It will only resume in March after that.

On the other hand, since the winter is not that harsh in South India, the production of high-quality tea leaves will increase.

If the climate conditions go hand in hand with the rise in demand in the market, then good prices can be fetched in states including Kerala. The tea industry is usually very live around the time of December.

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