Northeast small tea growers flag impact of massive imports

A jump in tea imports from African and Asian countries coupled with early closure of tea production across North India has impacted the small-scale planters. File
| Photo Credit: The Hindu

GUWAHATI

A jump in tea imports from African and Asian countries coupled with the Tea Board’s directive on early closure of tea production across North India has impacted the small-scale planters, an association of small tea growers has said.

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In a letter to Prime Minister Narendra Modi on Friday (January 24, 2025), the North East Confederation of Small Tea Growers Association (NECSTGA) said the Centre needs to save the 200-year-old Indian tea industry, specifically more than 2 lakh small tea growers in the country’s northeastern part who contribute 54% of teas produced in the region.

“The Tea Board of India directed us to stop harvesting tea leaves from December 1, 2024, to maintain equilibrium in the demand-supply mismatch. But we have noticed a huge jump in tea imports, which defeats the Tea Board’s intention to control the oversupply of tea in North India,” NECSTGA secretary general Binod Buragohain said.

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North India covers teas produced in the northeastern States, West Bengal, Bihar, and other tea-growing areas of northern India.

According to the Tea Board of Kenya, exports to India in 2024 (January-October) increased by 288% from the corresponding figure in 2023. Similarly, the Mechi Customs Office in Nepal recorded a 55.7% increase in exports to India.

Excellent leaves unplucked

The NECSTGA said the small tea growers (STGs) could not pluck “excellent quality” leaves in December 2024 because of the Tea Board’s directive. “It was not the STGs that suffered, it was a national loss,” the association’s president Diganta Phukon said.

“Tea production in Kenya and other African countries is increasing and restricting the production of a globally produced commodity only in North India would not help overcome demand-supply mismatch. Moreover, the Tea Board has no official statistics to prove that there is an oversupply of tea in India,” he said.

The association said the imported low-priced teas are often re-blended and re-exported as Indian teas, severely impacting the brand image, value, and demand of Indian teas especially those from northeastern India on the global market.

“If this unregulated import continues, it will deal a devastating blow to the small tea growers of India and dismantle the rural economy of the northeast, particularly in Assam. The tea industry, which has a legacy of over 200 years, is already grappling with low green leaf price realisation, declining demand, rising input costs, and compliance challenges regarding maximum residue limits (of pesticides),” the NECSTGA wrote.

Unsold teas

The association said 35-40% of the teas remained unsold at the auction centres in Guwahati, Kolkata, and Siliguri from October to December 2024. During this period, tea prices fell by 25-40%.

“Moreover, the Tea Board’s directive to mandate the sale of 100% dust grades exclusively through auctions has adversely affected sellers. The existing auction system is outdated, time-consuming, and costly for sellers, impacting both payment timelines and price realisation for green leaf,” the NECSTGA wrote.

“Sellers should be allowed the freedom to sell their teas through either auctions or private sales, ensuring better price realisation for small tea growers. Also, the Tea Board’s efforts to curb market oversupply, including the early closure of the plucking season (November 30, 2024), have failed to improve price realisation due to the influx of teas from Nepal, Kenyan, and other African countries,” it added.

The association said the Tea Board has no control over when and at what price teas would be sold in the auctions. It also has no control over the import of teas and is not in a position to assess the green leaf quality and the month-wise quantity.

“Therefore, we feel the Tea Board should not bring regulations like early closure and mandatory selling of teas through auction when it has no control over the market dynamics,” the association said.