Assam: Tea Production Down By 20 % Due To Heavy Rain

Following heavy rainfall in Assam, the arrival of tea to the Guwahati Tea Auction Centre (GTAC) got reduced by around 8 million kilograms in June and July.

The GTAC informed that 90.85 million kg and 103.24 million kg of tea arrived in June and July last year.

Dinesh Bihani, the Secretary of the Guwahati Tea Auction Buyer's Association (GTABA) said that the crop production has reduced by 20 per cent during the last two months as the state faced heavy rainfall.

"This means, we will be having a shortfall of around 39 million kg but by July, we will be having the total crop production similar to the year 2021 production. Till May 2022, we have seen around 38.90 million kg crop being in excess production," Bihani said.

He also asserted that the Indian tea market is currently in demand and the price of tea was also appreciated by Rs 15-20 on the good quality tea.

"Now the situation has turned and there is a strong demand on orthodox grade teas where the auction prices have increased by more than Rs 50 from the price of the last year. This is because of the strong demand for orthodox tea from exporters," he added.

Following the collapse of the Sri Lankan economy, foreign buyers have diverted their purchases to the Indian market, he further said.

"In recent times, we have seen a number of tea manufacturers diverting their production from CTC to orthodox and they are getting good prices for this change. Sri Lanka produces 300 million kg of tea, of which they export 286 million kg which constitutes 95 per cent orthodox tea," the GTABA secretary stated.

"India produces only 92.6 million kg out of which 33 million kg are produced in Assam. It is now believed that the orthodox grade might see a better demand and fetch good prices in the upcoming season," he added.