Assam Tea industry passing through critical juncture: NETA

Assam tea industry is passing through a critical juncture following continuous decline in production of the organised sector, low prices and huge rise in cost of production, the North East Tea Association said today.
"Workers' wages along with significant hike in input costs, like electricity, gas, coal, fertiliser, plant protection formulations, irrigation etc. Have led to a huge rise in the cost of production while tea prices have not been able to keep pace with this rise," NETA Chairman Bidyanand Barkakoty said at its 17th Biennial General Meeting held at a resort in Kaziranga today.
He also urged the Centre to carry out a comprehensive study on the sustainability of the tea industry.

Workers' wages constitute about 60 per cent of the total cost of production. The hike of Rs 43/- per day in the cash wage over a period of three years, with effect from January 2015, has brought about a huge impact on costs.
The average price of Assam CTC teas at the Guwahati Tea Auction Centre (GTAC) from April to September is lower by about Rs five per kg compared to the corresponding period last year.
Moreover, the unsold percentage at the GTAC from April to first week of October this year is 31.06 per cent, against last year's 26.78 per cent during the corresponding period, he pointed out.

The Chairman also expressed concern over incidents of assault on professional planters which may deter young talented people from entering the industry.
"Tea industry is highly labour intensive and both workers and professional planters are an asset to the industry. We need to create a congenial and peaceful atmosphere so that young talented people get attracted to work in tea estates", he said.
There have been some incidents of assault of professional planters that will deter talented people from choosing this profession, directly affecting the prospects of the Assam tea industry, Barkakoty pointed out.