Halt in work induced by the lockdown and incessant rain later have come as blessings in disguise for the tea industry in north Bengal as the dip in the production has led to a steep rise in the prices of both green tea leaves in the small tea sector and the processed tea at auction centres.

For the past few years, softening of tea prices because of increased tea leaf production has been the Achilles Heel of the tea sector, which is the major industry in north Bengal.

“The prices of tea leaves have substantially increased in the small tea sector across north Bengal. Usually, tea leaves are sold to bought-leaf factories at Rs 15 per kilo or so during the monsoon. But this year, the supply is less and hence, the price of 1kg green tea leaves touched Rs 30 and even crossed it in some areas,” said Prabir Seal, vice-chairman, Siliguri Tea Auction Committee.

When the lockdown was enforced across the country in March, the first flush tea production had begun. But the lockdown halted the production.

In Bengal, the industry remained closed till the middle of April. The state government then allowed tea plantations to function with only half of the workforce. It was only from June 1 that the industry could engage its entire workforce to perk up the production.

The data available with the Tea Board of India also show loss in the production in north Bengal during March and April this year.

In April, the total tea production in the state was 9.64 million kilos while it was 23.34 million kilos in 2019. Similarly, 19.75 million kilos of tea were produced in Bengal in March, which is less than 25.10 million kilos during the same month last year.

“From June onwards, the industry was somehow limping back to the track after suffering a setback at the beginning of the season because of the lockdown and the restrictions. However, sudden bouts of heavy rain only added to the problems as it affected growth of tea bushes,” said Sumit Ghosh, the secretary of the Terai branch of Tea Association of India.

The reduction in the production has led to a rise in average prices of tea at auction centres.

The average price per kilo was Rs 228.76 at the tea auction centre in Siliguri on July 4 this year. The price was Rs 144.57 on the corresponding day in 2019.

At another auction conducted on June 27, the average price was Rs 226.20, while the figure was Rs 144.36 in 2019.

“It is true that processed tea is fetching higher prices at auctions than last year,” said Seal.

Bijoygopal Chakraborty, the president of the Confederation of Indian Small Tea Growers’ Associations, said although the prices had increased, the turnover as a whole had remained the same because of the production loss.

“For example, a grower used to earn Rs 15 per kilo and would sell 10,000kg of tea leaves. This year, he is getting Rs 25 per kilo but could sell only 5,000 or 6,000 kilos of tea leaves as the yield is low because of the detrimental weather,” he added.