ITA’s AGM discuss ways to enhance growth of tea sector

The Darjeeling tea sector has witnessed a fall of around 50 per cent in the last decade from 13 mkgs to 6.5 mkgs

The Indian Tea Association (ITA) held its 138th Annual General Meeting under the chairmanship of Vivek Goenka. Dr Himanta Biswa Sarma, Chief Minister, Assam graced the occasion as the Chief Guest. Other dignitaries present were Sunil Barthwal, IAS Secretary to the Govt of India, Ministry of Labour and Employment and Dr KN Raghavan, Deputy Chairman, Tea Board of India.

Goenka said, “Indian tea prices after remaining stagnant for almost a decade showed some promise in 2020 due to shortfall in production. However, in 2021 average prices have declined by 6 per cent. A majority of teas are selling below Rs 200 per kg which is below the cost of production of the organised sector. Interventions like generic promotion, incentivising orthodox production, Auction reforms and value addition are critical for boosting domestic demand and exports.”

Goenka added, “Mitigation of the high cost of production through the takeover of social welfare amenities through government schemes as envisaged in the occupational safety, health and working conditions code, 2020 is a necessity for the future.”

Input costs have increased at a CAGR of 9 per cent to 12 per cent outpacing the growth in prices. The Darjeeling tea sector has witnessed a fall of around 50 per cent in the last decade from 13 mkgs to 6.5 mkgs. The Darjeeling tea sector which is experiencing lower crops and lower prices over the years needs special attention. 

The Darjeeling tea sector has witnessed a