Due to the increase in the cost of production against the increase in the price of tea, there was a demand to fix the floor price

- Bhoo Bazar - Dilip Shah

- Such demand started from the state of West Bengal and Assam: Instructions for selling tea worth Rs.3300 crore annually in Gauhati tea auction.

The tea market and industry sector in the country has recently witnessed a rapid reversal of equations. Although tea is the most widely consumed drink in India, recently there has been a trend towards coffee in big cities and especially among the youth. Meanwhile, indications from the recent tea auction at Coonoor in South India indicated that demand was lower than expected against supply and consequently tea prices in the auction remained under pressure. In the Coonoor auction, tea prices were reported to have dropped by Rs.4 to Rs.5 per kg. In the auction of leaf type of tea, the sale was recorded at 70 to 75 percent of the goods that were auctioned. Such a trend was seen in auction number 20. Meanwhile, the demand of bulk consumers in the tea market decreased when the hotels, restaurants were closed and public ceremonies were also closed during the Corona period, but now the situation has changed and now there were indications that the bulk consumers are coming to the tea market again as usual.

Market sources said that around Rs.3300 crore worth of Assam tea was sold in Gauhatti Tea Auction Center in Assam in the financial year 2022-23. During this period, a total of around 1650 lakh kg of tea was sold there and during this period tea auctions there yielded an average price of around Rs.191 to 192 per kg during the financial year. During this period, compared to the financial year 2021-22, the average price of tea in the financial year 2022-23 was higher by Rs.8 to 9 per kg, sources of Gauhatti Tea Auction Buyers Association said. There, at one point in the period of 2022-23, the price of Special Tea Manohas Golden Tea was Rs. 99999 per kg. These sources said that the demand for Assam tea in the world market increased during this period. In the last 2 to 3 years, exporters have come more and more in auctions. There, in the financial year 2019-20, a total of around 2049 to 2050 lakh kg of tea was sold at an average price of Rs.139 to 140 per kg.

Meanwhile, according to the sources of the Calcutta Tea Traders Association, there was an increase in demand in the Najab auction. West Indian demand was especially seen in the auctions. Tea auctions at Coonoor in South India also saw signs of increased supply of new flushed goods in May. This resulted in upward pressure on prices, although prices of primary whole leaf grade tea in leaf orthodox in Coonoor Oxon yielded higher by Rs 4 to 5 per kg. The prices of broken goods were also Rs.2 to 3 per kg. In CTC malls, Byro's inquiry was seen more. According to the sources of Global Tea Auctioneers, there were indications that the production of South Indian tea in the first three months of January to March 2023 has decreased by about 70 lakh kg in the first three months of 2023 as compared to this period of 2022 and around 400 lakh kg in three months. The production in Sri Lanka decreased by 40 lakh kg to about 590 lakh kg. However, the total production of tea in India increased to 770 lakh kg during this period, creating a new record. In India, the total production has gone up with a particular increase in production in North India against a decline in production in South India. The cost of production of tea has increased. And while the growth in production is less than expected, tea production has decreased especially in Darjeeling and Doors areas of West Bengal. In such circumstances, tea growers in the region have requested the Ministry of Commerce in Delhi to fix a minimum floor price for tea support. It has been proposed to the government to fix such floor prices especially for green-leaf and mad-tea. The government has been requested by The Indian Tea Association to fix such a floor price keeping in view the production cost of tea. Sources in the association said that if such a floor price is fixed, tea producers and especially small and medium-sized tea producers will be able to get remunerative prices for tea.