Image used for representation only.
| Photo Credit: K. K. Mustafah

As the tea industry in the country continues to grapple with quality issues the Indian Tea Association (ITA) on Friday emphasised on the introduction of a statutory scientific quality grading system from one leaf to five leaf marks on tea retail packets to enhance market competitiveness and consumer trust.

The proposal was made during the 141 Annual General Meeting of the Indian Tea Association where ITA chairperson Hemant Bangur floated the proposal during his speech.

Speaking on the issue of quality and compliance as far as tea is concerned, Mr. Bangur emphasized that the industry is committed to ensuring safe tea consumption through rigorous maximum residue limits (MRL) compliance. The Food Safety and Standards Authority of India (FSSAI) has set maximum residue limits (MRLs) for pesticides used in tea.

“The proactive measures taken by Assam and West Bengal State Governments and the Tea Board to foster an ecosystem of compliance, which is crucial for enhancing the brand equity of Indian teas, was commended.” the ITA chairperson said.

During the AGM, the stakeholders of tea industry highlighted the challenges faced by the industry which included the “unsustainable increase in costs” amidst “unremunerative prices” with “adverse weather conditions across Assam and Bengal” further aggravating the situation. 

Referring to the Tea Board data Mr. Bangur pointed out that there has been drop of tea production across north India, and as of September 2024 the crop decline stands ar 63 million kilograms

“With a low compound annual growth rate (CAGR) of tea prices (2.88%) compared to rising input costs (10-12% CAGR), tea industry in the last decade has been in a perpetual state of crisis,” the ITA chairperson said.

There has been some silver lining on the export side with an increase by 31 million kilograms till August 2024. The ITA chairman also urged for enhanced incentives to support the production of orthodox teas, which are highly sought after in international markets.

The ITA also emphasised that the Darjeeling tea sector needs a financial relief package which has the endorsement of the Parliamentary Standing Committee on Commerce.

Tea garden workers pluck fresh tea leaves from a tea garden, at a tea estate in Darjeeling. File
| Photo Credit: ANI

The Indian Tea Association (ITA) on May 10 reiterated its plea for financial assistance from the Centre to support the struggling Darjeeling tea industry.

According to the ITA, the situation in Darjeeling is critical due to decreasing yields and plummeting prices.

Without a financial relief package, the survival of the Darjeeling tea industry is in jeopardy, the association said, adding that it has urged the government to consider and act upon a financial revival package endorsed by the Parliamentary Standing Committee on Commerce in March 2022.

“The association has urged the government to extend a financial revival package to the Darjeeling tea sector which has been already endorsed by the Parliamentary Standing Committee on commerce in March 2022. This awaits consideration and action”, the ITA said.

The ITA, quoting Tea Board data, highlighted that adverse weather conditions have affected tea production in Assam and West Bengal, leading to a significant decrease in production.

From January to March 2024, production was down by 13.69 million kg at 96.10 million kg across the country, according to Tea Board data. Prices at the auctions have also taken a beating during the same period, the ITA said, adding that at an all-India level, auction prices were down by ₹16.08 per kg at ₹128.12.

Meanwhile, tea exports from India during January to December 2023 fell to 227.91 million kg as compared to 231.08 million kg in the same period of 2022, adding to the industry’s challenges, the ITA said.