The Indian tea industry and the tea garden machinery industry have been no exception to the devastation of the pandemic over the past two years, struggling to cope with low prices and high input costs. Stakeholders in the industry have called for more focus on tea quality and boosting exports. . Since the outbreak, due to restrictions on picking, tea production has also declined, from 1.39 billion kilograms in 2019 to 1.258 billion kilograms in 2020, 1.329 billion kilograms in 2021 and 1.05 billion kilograms as of October this year. According to industry experts, lower production has helped prices rise at auctions. Although the average auction price reached 206 rupees (about 17.16 yuan) per kilogram in 2020, it will drop to 190.77 rupees (about 15.89 yuan) per kilogram in 2021. He said that so far in 2022, the average price is 204.97 rupees (about 17.07 yuan) per kilogram. “Energy costs have risen and tea production has fallen. In this situation, we must focus on quality. In addition, we need to promote exports and increase the added value of tea,” he said.
The Darjeeling tea industry, which produces premium traditional black tea, is also under financial pressure, the Tea Association of India said. There are about 87 tea gardens in the region, and due to the decline in production, the total production is now about 6.5 million kilograms, compared with about 10 million kilograms a decade ago.
Falling tea exports are also one of the major concerns for the tea industry, experts say. Exports fell from a peak of 252 million kg in 2019 to 210 million kg in 2020 and 196 million kg in 2021. Shipments in 2022 are expected to be around 200 million kg. The temporary loss of the Iranian market is also a huge blow to the export of Indian tea and tea picking machines.