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‘Heavy rainfall in Assam impacts tea production’

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tea auction
Image credit ANI

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

According to the GTAC, 90.85 million kg and 103.24 million kg of the crop (tea) arrived here in June and July last year. 

Dinesh Bihani, the Secretary of the Guwahati Tea Auction Buyer’s Association (GTABA) told ANI 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 further said that the Indian tea market is now having a better 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. He also mentioned that following the collapse of the Sri Lankan economy, foreign buyers have diverted their purchases to the Indian market. 

“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 further. “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. The people of Assam have faced a severe flood situation after regular heavy downpours in various districts of the state.

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