Guwahati: The Assam tea industry which has passed a glorious 200 years is on the brink of almost terminal decline in Barak Valley for a number of reasons, including climate change and labour productivity.
This was stated by Sushil Kumar Singh, chairman of the Tea Association of India (TAI), Barak Valley branch in its 49th annual general meeting held in Silchar on Thursday.
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“We also stand at the edge of uncertainty where the tea industry in the country, in Assam and more specifically in the Cachar region is on the brink of almost terminal decline,” Singh said.
Singh said the current status of the tea Industry is on the one hand it is a matter of pride that the industry in Assam has completed 200 years of its glorious existence and the whole state along with the country is rejoicing in achieving this significant milestone.
“The cost of inputs viz: coal, fertilizer, gas, electricity, wages have risen at the CAGR ranging between eight per cent to 15 per cent In the last 10 years whereas the North Indian Tea Auction prices registered at a mere growth of three per cent CAGR in last 10 years,” Singh also said.
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“Barak Valley tea industry is logistically placed at a very disadvantageous position in terms of topography, soil and other factors vis-à-vis other tea growing areas of Assam,” he said.
“With the total production capacity of 40-45 million kgs and the average price realization of Rs 150-Rs 170 per kg when the cost of production of tea is Rs 190–Rs 200 per kg approximately, it is just a matter of time that the industry collapses. Over the years in this region the total number of operating tea gardens has come down to 101 from 115,” Singh said.
He also said the total production of tea in Barak Valley recorded during 2023 is 38.81 million kg against production of 40.93 million kg in 2022 and 56.26 million kg in 2003.
The production was lower by 2.12 million kg (five per cent ) in 2023 in comparison to the production of tea in 2022. We noticed and recorded a declining production trend from the year 2017 which is a matter of great concern.
A study reveals that 70 per cent of the production of the Valley comes from 37 tea gardens and the balance 30 per cent of production from the rest of the tea gardens.
The average yield per hectare in 2023 in Barak Valley is around 1070 Kg. It is a matter of great concern that the yield of Barak Valley tea gardens has declined sharply since 2004.
“The average price realization up to sale number 12 through Kolkata Tea Auction Centre is Rs 173 per kg in 2023-24 against Rs 181/- per kg in 2022-23 similarly, price realization through GTAC for tea produced in Barak Valley during 2023-24 is Rs 151 per kg and in 2022-23 it was Rs 156 per kg,. This indicates a clear decline in price realization by Kolkata Tea Auction Centre Rs 8 per kg and Rs 5 per kg for sale through Gauhati Tea Auction Centre,” Singh further said.
The cost of inputs increased in a normal trend.
The workers’ wages have increased substantially, the present minimum cash wage per day is Rs 228 in the tea estates of Barak Valley which constitutes around 60 per cent of the cost of production.
“The Barak Valley tea industry also suffers from factors such as poor labour productivity, which also affects the garden economy adversely. From the statistics available it may be mentioned here that the labour productivity in the South India area is 1350 kg, In Brahmaputra Valley 750 kg and in Barak Valley it is only 310 kg,” Singh said.
Singh also said: “In the past decade, the industry has experienced a significant downturn, marked by a decline in yield and an increase in pest and disease infestations that have become increasingly challenging to manage. The industry’s low land productivity can be attributed to ageing tea bushes, high vacancy rates, and poor bush frames, challenges that could be effectively addressed through re-plantation and rejuvenation infilling. Unfortunately, the industry has struggled to keep up with the necessary rate of re-planting due to financial constraints.”
Elaborating on the effects of climate change on the tea industry, the chairman said amidst the prevalent discourse on climate change, the tea industry stands out as one of its most adversely affected sectors. The sensitivity of tea growth to climate conditions renders it highly vulnerable to climate changes and variability. It is imperative to identify how tea yield responds to climatic variability in operational plantations and determine the key climatic variables that exert the most significant impact on tea yield.
“This understanding is crucial for assessing the industry’s vulnerability in the face of climate-related challenges,” he said.
“Technology such as precision agriculture which includes GPS mapping, IoT sensors, and data analytics is the order of the day and can be introduced in the field works to increase quality, productivity, adapt and mitigate Climate Change while reducing the cost of production,” he further said.
As per the FSSAI requirement test, the presence of MRL level on the tea produced at the tea gardens of the Barak Valley area is much lower than in the other tea-growing areas of the country. Tea produced in the tea gardens of the Barak Valley area is known for its strong bright brew.
“We urge the Tea Board and Central Government to adopt special promotion for tea produced at this region emphasizing its health benefits and quality of brew,” he further said.
Since the last few years Tea industry of Barak Valley has been facing trouble in arranging coal for running their factories, we urge the government to set up a coal depot at Barak Valley in a centrally located area so that the only labour-oriented industry in the region can procure coal locally and sustain.
“The government agencies are planning for supply of natural gas in a selected area of Cachar district, we have had several discussions with the implementing agency Purva Bharat Gas Ltd. The rate quoted by the supplier is found to be uneconomical. We urge the government to allow suitable subsidized and/or sustainable rates for the tea industry so that tea factories of this region show courage to convert their factories to gas compatibility,” he added.