Goodricke Group, part of Camelia Plc, the world’s largest producer of bulk tea, warned of a crisis in the Indian tea industry.

Speaking at the annual general meeting of the company, chairman P.J. Field expressed concerns over the spiralling cost of tea production with a recent hike in worker wages and other input costs without a commensurate rise in the price of tea in the market. This may result in a crisis in the Indian tea industry, Field said.

The interim wage revision in Assam by 18.25 per cent and in Bengal by 21.57 per cent has created a general inflation in the cost of production by 11 per cent and 13 per cent, respectively, without any compensatory increase in the market price.

This has put tremendous pressure on profitability, Atul Asthana, managing director & CEO of Goodricke Group, later informed the shareholders. The cost pressure was showing as profit stood at Rs 9.4 crore in 2018-19 compared with Rs 31.7 crore a year ago. This year, the company plans to open three tea lounges in Calcutta, Mumbai and Mirik, Darjeeling.