Brahmaputra Valley records higher prices

The Brahmaputra Valley in Assam has recorded higher tea prices at the auctions than prices in North India as also the all-India average.

While all India auction tea prices in 2008 touched Rs 86 per kg, the North India average price was Rs 94 per kg and Brahmaputra Valley price was at Rs 99 per kg as against Rs 76 per kg in 2007, an increase of Rs 23 per kg.

The average North India price for 2007 was Rs 73.56 per kg. Monojit Dasgupta, secretary general of the Indian Tea Association (ITA) pointed out at the annual general meeting of the Assam branch that the production gain in the Assam Valley was less than the all India average.

While the all India tea production registered an increase of 36 million kg to 981 million kg in 2008, production in the Assam Valley registered a marginal gain of 1.8 million kg. Total consumption in 2008 was estimated at 825 million kg.

Orthodox production in North India of ITA members had increased by about four million kg. “To encourage higher orthodox production and to meet international demand, Tea Board is providing higher financial assistance for modernization/installation of orthodox machinery under the quality upgradation scheme,” said Dasgupta.

Since 2007 ITA had been working with the Tea Board culminating in GI approval for Assam Orthodox teas.

“Assam Valley orthodox tea can be differentiated for its inherent qualities. As Assam Orthodox is greatly prized in several key markets such as Germany, Iran, Japan and Russia, these teas needed better definition for strategic positioning,” said Dasgupta. ITA had conducted an exercise on domestic consumption, which showed that the growth rate of consumption of tea was around 3.3 per cent.

Dasgupta said, during the 11th Five Year Plan period, Tea Board planned to spend about Rs 30 crore, which would include organized media campaign, domestic fairs, exhibitions, advertisements. ITA feels that an ambitious and aggressive “Brand India” tea promotion campaign should be launched and sustained by the Tea Board in the coming years.