Sustainability challenges for Assam tea

Dip in both tea production and price realisation in Assam is a cause of concern. The tea industry needs to push for quality control while navigating climate change turbulence, and the promotion of tea as a health drink for a turnaround. Industry estimates show that production of tea in the state declined to 641 million kilograms during the period from January to November 2021 against 693.62 million kg during the corresponding period in 2019. Compared to same period in 2019, this was 52 million kg less, which calculates to about 8 % drop in the volume of production, which does not augur well for the industry. The decrease in annual average price realisation has compounded the situation. An analysis by the North Eastern Tea Association shows that the annual average price of Assam CTC tea declined to Rs 203.87 per kg (January to December period) in 2021 compared to Rs. 242.19 during the corresponding period in 2020. The annual average price of Assam CTC tea during the corresponding period in 2019 was Rs 162.26 per kg when the production (January to November) was the highest over the past three years. The production during 2020 dipped to 593.58 million kg due to COVID-19 disruption. This implies that the industry needs to reassess its strategy of synergising demand and supply. With problems of global warming and climate change aggravating, the cultivation of the rain-dependent cash crop has become challenging. Without support from the government for climate change mitigation, the industry on its own increasing quality tea production is going to be difficult. The quality of green leaves plays the most critical role in determining quality of made tea and failure of the industry to ensure is mirrored by less realisation of price when the production goes up. Small tea growers in the state account for over 50% of the total tea production but maintenance of the quality of green tea supplied by them has remained a grey area. Disputes over the quality of tea supplied by small tea growers need to be settled once for all. The industry needs to acknowledge that confusion exists over determining the quality of green leaves and ignoring the problem has only precipitated the crisis. The role of small tea growers in generating huge employment when all other avenues of employment have shrunk is huge and handholding support from the industry, Tea Board and the State Government to these growers will not only strengthen the Assam tea industry but will also strengthen the state economy. Evolving a set of clear protocols of quality control and system to ensure adherence has become urgent necessity. This cannot be ensured without tea growers and manufactures converging on the quality control issue. Government providing more funding support to Tocklai Tea Research Institute, the oldest and largest tea research institute, can help find better solutions for quality assurance besides tea bushes withstanding extreme weather conditions like rising temperature and variation in rainfall pattern. While the large tea estates have to bear the cost of welfare measures of garden workers, the small tea growers are not burdened with any welfare costs which create unevenness in production cost but poor access to bank credit and small holding makes going tougher for small growers in extreme weather condition. One strategy could be promoting tea as a health drink along with the branding of Assam tea to fuel demand in the national market. Instead of small and large growers eyeing each other as competitors, it is time to join hands and launch an aggressive promotion of the brand Assam tea but keeping in mind that quality always plays the dominant role in successful brand positioning. Assam tea industry in collaboration with the state government can set up tea lounge to serve quality Assam tea in all state capitals can help build up the desired campaign. The Ministry of Tourism and the state tourism department supporting the industry to rope in tour operators through tea promotion events in such tea lounges can also help promotion of tea tourism. Packaging in Assam tea industry needs special attention as it shapes first impression of a brand. This requires the industry to groom local creative talents who will be able to come up with creatives for all platforms including the digital platforms to market the uniqueness of Assam tea. The quality of Assam tea is rooted in the industry’s knowledge of taking two leaves and a bud as fine tea leaf. While climate change mitigation initiatives by the government and the industry will help build resilience against extreme weather conditions, experimenting innovative ideas of marketing is a must to trigger more demand for Assam tea in the national market. Assam government joining hands with other tea producing states to impress upon the Central Government for declaring tea as a national drink will benefit the entire tea industry.