Tea industry getting into crisis mode

KOCHI: Planters have voiced concern at the falling prices of tea in South India despite a shortfall in production and rise in exports. The South Indian tea prices have dropped by Rs 14 in 2014 though the all India production has fallen by 22 million kg due to extreme weather conditions and the export has moved up by 6.7 million kg in the year, according to The United Planters’ Association of Southern India (Upasi).

While there has been considerable reduction in the price at the auctions, prices of packet teas sold to consumers have not changed, Upasi president Peter Mathias said in a statement, wondering why the general principle of supply and demand is not working for tea. He said tea industry is getting into a crisis mode due to lower price realisation and increasing cost of production and it would be difficult for many of the estates to even pay wages on time.