Tea Industry in Southern parts of India has expressed concern about the declining prices of tea, saying industry was getting into a crisis mode once again due to lower price realisation and skyrocketing cost of production.
Despite a short fall of 22 million KG in all India production, prices in South India during the calendar year 2014, have dipped by Rs 14, vis-a-vis 2013, Peter Mathias, President, United Planters Association of Southern India, said today.
Mathias wondered why the general economics principle of supply and demand was not working out for tea.While there has been considerable reduction in the prices at the auction, prices of packet tea sold to consumers have not changed, he said.
If the trend continued, it will be difficult for many of the estates even to pay the wages and other benefits, on time, he lamented.
Mathias also expressed shock on the reported demand by tea dealers association to relax the import norms of tea to allow import of large quantity of tea.
The production has been growing at an average of more than four per cent over the last five years and there is absolutely no shortage of tea in India, he claimed.
UPASI wanted to further strengthen the Tea Distribution and Export Control Order, to ensure that even in the case of imports for re-exporters, only teas of high quality which meets all the stipulations of FSSAI as applicable to domestic producers are allowed, Mathias said.
