Kolkata
The Tea Association of India (TAI) has raised concerns about a serious crisis in the North Bengal tea industry, which has led to the closure of numerous tea gardens in the region. In October 2023, around 13 to 14 tea gardens in North Bengal, including the Dooars, Terai, and Darjeeling regions, had to shut down, affecting more than 11,000 workers. This crisis has been exacerbated by increased interim wages announced by the West Bengal government earlier this year. The tea industry in these regions, which includes both organized tea gardens and bought leaf factories, produces approximately 400 million kilograms of tea annually. TAI has cited rising input costs, including fertilizers, coal, and chemicals, as well as lower price realizations at auctions, as key challenges for the industry. The association has engaged in dialogue with the West Bengal government to seek solutions for the financial difficulties faced by the industry, especially during the winter when plucking comes to a halt. According to TAI, the price realization at the Siliguri Tea Auction Committee in October 2023 was Rs 165 per kilogram, compared to Rs 182.81 per kilogram in the same month in 2022. The tea industry’s challenges are reflected in national tea production figures, with total production in India during September 2023 standing at 162.90 million kilograms, a decrease from 195.69 million kilograms in the corresponding month of the previous year, according to data from the Tea Board.
