NECSTGA said, “Tea Board India had directed us to stop harvesting of tea leaves from 1st Dec 2024 with an intention to bring equilibrium in the demand supply mismatch. But now we have noticed that there has been huge jump in imports of tea from Nepal, Kenya and other African countries. As per the official figures of Tea Board of Kenya, the exports from Kenya to India in 2024 (Jan to Oct) is 13.71 million kgs whereas in 2023 (Jan to Oct) it was 3.53 million kgs. Therefore, there has been a jump of 288%. Similarly, in regard to import of Nepal teas, the Mechi Customs Office has witnessed 55.70% rise in tea export to India in the last six months. The early closure of tea production in North India is cited as the reason behind the rise in import of tea. Therefore, Tea Board’s intention to control oversupply of tea in India got defeated.
This year even in the month of December, we had noticed excellent quality leaf in our tea bushes, which we couldn’t pluck because of directive by Tea Board to stop harvesting from 1st Dec. It’s not that we (STGs) have only suffered loss; it’s a National Loss.”
The body stated, “The production in Kenya and other African countries are increasing and therefore in a globally produced commodity, restriction in production only in North India would not help in overcoming demand-supply mismatch, if any. Moreover, Tea Board has no official statistics to prove that there is oversupply of tea in India. We have heard that the imported teas are often re-blended and re-exported as Indian teas, which has severely impacted the brand image, value, and demand of Indian teas—especially those from Northeast India—on the global market. Furthermore, reports indicate that 119 million kgs of old teas remain at the Mombasa auction centre, awaiting export to India. If this unregulated import continues, it will deal a devastating blow to the small tea growers of North East India and dismantle the rural economy of the region, particularly in Assam. The tea industry, which has a legacy of over 200 years, is already grappling with low green leaf price realization, declining demand, rising input costs, and compliance challenges regarding Maximum Residue Limits (MRL), as highlighted in our earlier letter (NECSTGA/M-11/24, dated 29th November 2024)”.
The tea planters body said that from October to December 2024, 35–40% of teas remained unsold at auction centres in Guwahati, Kolkata, and Siliguri. During this period, tea prices fell by 25–40%. Moreover, the Tea Board’s directive to mandate the sale of 100% Dust grades exclusively through auctions has adversely affected sellers. The existing auction system is outdated, time-consuming, and costly for sellers, impacting both payment timelines and price realization for green leaf. Sellers should be allowed the freedom to sell their teas through either auctions or private sales, ensuring better price realization for small tea growers. Also, the Tea Board of India’s efforts to curb market oversupply, including the early closure of the plucking season (30th November 2024), have failed to improve price realization due to the influx of teas from Nepal, Kenyan and other African countries and various other factors. Tea Board no control at what price tea would get sold in auction and when it would get sold. Tea Board has no control on climate (climate change is a reality in tea plantations) and therefore Tea Board is not in a position to assess on the green leaf quality & quantity month-wise. Tea Board has no control on import of teas as well. Therefore, we feel Tea Board shouldn’t bring regulations (like early closure and mandatory selling of teas through auction) where Tea Board has no control on market dynamics..”
