The Tea Buyers Association of Cochin has urged the Tea Board to undertake a detailed study over the challenges faced by stakeholders in modernising the auction portal with new technologies and reviving rules.
While the buyer community appreciates progressive reforms, it is imperative that such changes be implemented with a comprehensive understanding of the diverse segments within the auction ecosystem, such as corporate packeters, blenders, exporters, and small and medium buyers, said Anil Kumar.N Prabhu, outgoing president of the association while addressing 52nd AGM.
Unfortunately, recent changes have been introduced without adequate consultation or consideration of how these segments operate. This has led to undue hardship, particularly for small and medium buyers, many of whom are struggling to sustain their businesses. These buyers form the backbone of the auction system and play a vital role in promoting tea in the domestic market. Their contributions must not be overlooked, he added.
Despite being the second-largest producer of tea globally, trailing only China, India’s per capita tea consumption remains modest at approximately 840 gram annually—significantly lower than Pakistan’s 1.5 kg. Even a marginal increase in domestic consumption could provide a substantial boost to our struggling tea plantations.
He requested the Tea Board, along with industry stakeholders and trade bodies, to actively promote tea consumption, particularly among the youth under the age of 35, who represent nearly 65 per cent of the population.
Referring to the performance of the industry in 2024, he said the tea sector faced significant challenges due to unfavourable weather conditions. India’s total tea production stood at 1,284.78 million kg, a decline of 108.88 million kg compared to 1,393.66 million kg in 2023. North India contributed 1,057.98 million kg, down from 1,156.98 million kg, while South India produced 226.80 million kg, a decrease from 236.68 million kg.
Exports saw an encouraging rise. India exported 254.67 million kg of tea in 2024, up from 231.69 million kg in 2023—an increase of 22.98 million kg. This combination of reduced domestic supply and increased exports helped drive higher auction prices, offering some relief to the industry.