• Kangra’s Tea Factories May See Revival | Tea Prices May Go Up As Procurement Costs Rise | CAG Report Highlights Poor Implementation of Labour Laws In Assam

    By Aravinda Anantharaman | Editor

    India Tea News for the week ending September 6, 2024
    India Tea News | Aravinda Anantharaman

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    Dharmsala Tea Co., Kangra
    Dharmsala Tea Co., Kangra

    Kangra’s factories may open again

    Following a tea board meeting this week, plans are underway to revive the regional cooperative tea factories in Kangra. Four cooperative factories were established in Kangra between 1964 and 1981, but three of them shut down, and only the one in Palampur remains open. With the growing small tea grower segment, reopening and upgrading the factories could benefit farmers. The Hindustan Times quoted Kangra Valley Small Tea Planters Association president Suksham Butail as saying it could benefit 250 small tea growers and support the livelihood of 6,000 individuals.

    Tata and HUL may increase tea prices

    Supply of tea has been hit this year, with climatic conditions being a significant reason. The surge in tea prices stems from a sharp decline in production. Tea production dropped by about 13% from January to July, impacting prices. July auction prices in North India increased by 21% from last year. August saw a further rise in auction prices in Kolkata and Siliguri. Coonoor and Cochin also saw a price rise of 37% and 21% respectively. The impact of price rise was seen in CTC more than orthodox. This is expected to impact retail prices from the top two packeteers in India, Hindustan Unilever (Lipton, Taj Mahal, Brooke Bond) and Tata Consumer Products (Tata Tea, Tetley, Kanan Devan, Agni, etc.). Incidentally, share prices of several listed tea companies, including Jayshree Tea and United Nilgiri Tea Estates, surged on Wednesday thanks to increased procurement costs. Business Today

    CAG report highlights the inadequate implementation of labor laws

    A recent Comptroller and Auditor General report highlighted inadequacies in implementing labor laws in Assam. The audit on Implementation of Schemes for the Welfare of Tea Tribe, for 2015-16 to 2020-21, assessed the implementation of welfare schemes for the tea tribes across Cachar, Dibrugarh, Nagaon, and Sonitpur. There are 390 tea estates in these zones, of which 40 were selected for the audit based on plantation size and worker count. The audit included records and interviews with 590 workers. Some of the areas highlighted are insufficient intervention by the state in aligning wages with the Minimum Wage Act (MW Act), inadequate efforts to improve workers’ conditions, wage disparities between Barak Valley and the Brahmaputra Valley, poor implementation of welfare schemes, and lack of reports and data as mandated.
    Pratidin Time

    Episode 184

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  • Wayanad Landslide Aftermath | Andrew Yule Reports Loss

    By Aravinda Anantharaman | Editor

    India Tea News for the week ending August 30, 2024
    India Tea News | Aravinda Anantharaman

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    Torrential monsoon in the rugged tea lands caused deadline landslides.
    Torrential monsoon in the rugged tea lands caused deadline landslides. Torrential monsoon in the rugged tea lands caused deadline landslides. Photo by Melech Charly on Unsplash

    Wayanad Landslide Aftermath

    It has been nearly a month since the devastating landslide in Wayanad. Over 100 people are still missing. DNA testing has been the only way to identify family members. Media reports carry stories of families desperately trying to understand whether a missing family member is alive or among the unidentified dead. There have been mass burials, and among those dead are several people who came from states such as West Bengal and Assam to work on tea, coffee, and rubber estates here. Harrisons Malayalam Ltd. is one of the largest tea companies in the state, with tea estates in the affected area and about 600 workers. The company has committed to supporting relief measures for its employees.

    Andrew Yule & Company Reports Losses

    The Deccan Herald has reported news of Andrew Yule & Company, a public sector undertaking under the heavy industries ministry, declaring nearly Rs 1000 crore or USD 100 mn in losses for 2023-24. This has put the future of 8,000 workers in Assam at risk. The company owns 15 estates, of which 10 are in Assam. There are concerns about how this would impact the running of the estates, with labor unrest being a top concern. The chief secretary has sought interventions from the union government to help the company address its current situation.

    Episode 183

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    • Assam Tea Estates Get Tourism Support | Sanjay Singhal Appointed Wagh Bakri CEO | Auction Prices High In Sale 33

      By Aravinda Anantharaman | Editor

      India Tea News for the week ending April 23, 2024

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      Kaziranga National Park, Assam, India
      Kaziranga National Park, Assam, India

      Assam Tea Gardens Continue To See Tourism Support

      The Assam state government is sticking to its plans to promote tea tourism in Assam, and in 2023, 25 tea estates received funds to promote tea tourism. This week, as part of Phase II, 34 tea estates have received their sanction letters. This will mean they stand to see a financial grant of INR 2,00,00,000 or $270,000 to develop tourism and hospitality infrastructure on their estate. Tourism is hoped to bring in more revenue to manage tea estates. Work on the first phase is ongoing; no further details are available.

      Sanjay Singhal Joins Wagh Bakri As CEO

      Sanjay Singhal, COO of ITC, has been appointed CEO of the Wagh Bakri Tea Group. Singhal oversaw beverage and dairy during his eight-year stint at ITC. In October 2023, Parag Desai, Executive Director of the Company, passed away unexpectedly after succumbing to injuries from a fall on his morning walk. Wagh Bakri is India’s third-largest packaged tea company, headquartered in Ahmedabad, with an annual turnover of $250 million.

      Auctions See Higher Prices

      Week 33 saw a sharp rise in prices for all categories of tea in both North and South India. In north India, orthodox tea averaged Rs 316 per kilo, while CTC was at Rs 247 per kilo, higher than Sale 32. In the south, CTC dust averaged Rs 137 per kilo, higher than CTC leaf, while orthodox leaf averaged Rs 167 per kilo, also higher than the previous week. Sale percentages were also higher this week, with CTC Dust seeing a 97% sale in south India.

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    • Wayanad Landslides See High Death Toll | Kangra Tea Sees Low Production And Prices | Tea Board Announces Winter Closure Dates

      By Aravinda Anantharaman | Managing Editor

      India Tea News for the week ending August 2, 2024

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      Multiple mudslides buried tea workers in their homes in Mundakkai and Chooralmala.

      Landslides In Wayanad Cause High Death Toll

      This year’s monsoon has been devastating. In Kerala’s Wayanad district – an important tea region – several landslides on July 30 led to the loss of lives. At last check, 108 people were reported dead, with many still missing. Heavy rains continue even as rescue work has commenced. The landslides struck when people were asleep. This is the worst natural disaster in the state after the 2018 floods. Wayanad, located in the Western Ghats, is vulnerable to landslides. People here are mainly plantation workers – working in tea and cardamom estates. Rescue operations have been affected by the continued rain, and air relief has not been possible. The BBC reported that nearly 350 families have been affected.

      We have been following up on the Wayanad rescue. As of Thursday evening, the death toll stood at 295. The worst affected are the Mundakkai and Chooralmala villages. Before-and-after photos of these villages are online. The BBC reported that 1,600 people had been affected from the tea estates and villages in the area. 82 relief camps have been set up, and 8,000 people have been moved there. Relief operations continue, and the army has been called in to help.

      Kangra Reports A Poor Season So Far

      Kangra in Himachal Pradesh, in north India, has reported a poor season so far. Once renowned for its green tea, the region has fought to rebuild its tea industry. This year, climate change has been a challenge with dry weather and no rain. Production dropped by about 20%. Without warehouse access, tea must be transported to Kolkata, where it is sold via auctions. Kolkata auctions have seen poor demand from the export market. These have seen low prices – about a 50% drop from last year – for Kangra’s teas. The farmers are asking for greater state government support, regional warehousing facilities, and more avenues to sell the tea in the state, including at the famous Golden Temple at Amritsar. Tribune India

      Tea Board Issues Closing Dates for 2024

      The Tea Board has announced the last dates for plucking for gardens in north India, including Darjeeling, Dooars, Terai, Sikkim, Assam, Himachal Pradesh, Uttarakhand, and Bihar, on 30 November. The last date for processing green leaf is set at 2 December.

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    • Assam Small Tea Growers Pledge To Grow Clean Tea | North India Tea Production Lower by 60 Percent

      By Aravinda Anantharaman | Managing Editor

      India Tea News for the week ending June 28, 2024
      India Tea News | Aravinda Anantharaman
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      Application of pesticides in tea fields
      Application of pesticides in tea fields

      Assam Small Tea Growers Pledge To Grow Clean Tea

      The All Assam Small Tea Growers’ Association has pledged to work to improve the quality of Assam tea. The association has appealed to its members to stop using banned pesticides. They are conducting workshops to raise awareness about tea safety and permissible pesticides. And seem keen to change the perception that small tea growers are dragging down the quality of tea. Some samples of green leaf from small tea growers got a clean chit after testing at the Tea Research Association at Jorhat. What they seek in return for producing clean leaf is remunerative prices.

      India Tea Production for 2024 Sees 60 Million Kilo Decline

      The Tea Association of India has issued a press release to raise concerns about the drastic drop in tea production in north India in the first and second flush. The cause has been the severe lack of rainfall and excessive heat which this region has seen all year. The Association estimates a reduction of around 60 million kilograms by the end of June 2024, compared to the same period last year. By April, Assam had an 8% drop compared to the same period last year, while West Bengal saw a 13% decline. Things took a turn for the worse in May, with a 20% and 40% drop in production compared to 2023 in Assam and West Bengal, respectively. While West Bengal saw a 50% to 80% reduction in rainfall in major tea districts, Assam saw a 10% to 30% shortfall. It also means possible heavy monsoons with above-normal rainfall that further exacerbate the situation.

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