Tea Association of India Seeks Fiscal Relief Amidst Production Crisis

The Tea Association of India (TAI) has requested fiscal incentives from the West Bengal government due to a significant drop in tea production in 2024, attributed to adverse weather and pest attacks. Production in Assam and West Bengal dropped by 11% and 21%, respectively. The industry faces a loss of 160-170 million kg in 2024.

The Tea Association of India (TAI) has urged the West Bengal government to provide fiscal incentives to address the severe impact of a significant production drop. A statement issued by TAI highlighted the crisis faced by the industry.

According to TAI president Sandeep Singhania, 2024 has seen a noteworthy decline in production without corresponding price realization. Data from the Tea Board indicates that production in Assam and West Bengal fell by 11% and 21% respectively in July 2024, compared to the same period in 2023. Adverse weather conditions and pest infestations have been major contributors to this decline.

The industry expects a production loss ranging between 160-170 million kg in 2024, down from 1,394 million kg in 2023, according to Tea Board estimates. North India's tea-producing regions, primarily Assam and West Bengal, have also been impacted by delays in receiving subsidies for developmental work. While Assam has already extended fiscal support, TAI is seeking similar measures from West Bengal to navigate through this 'period of crisis.'

(With inputs from agencies.)