Guwahati: Samudra Prasad Baruva, the Chairman of Assam Tea Planters' Association (ATPA), a fourth-generation tea planter and a trailblazing entrepreneur has revealed the market conditions of the Assam tea industry during an exclusive interview with the Business North East (BNE).
Well-known for carrying forward the legacy of his illustrious family in the tea industry, the ATPA chairman highlighted the historical significance of ATPA and shed light on the pressing challenges the tea industry faces today.
"The industry is at a critical juncture. While tea prices have remained largely stagnant over the years—with occasional spikes during COVID-induced shortages—the cost of production has risen significantly. Over the past 7-8 years, while production costs have seen a compounded annual growth rate (CAGR) of 21%, prices have increased merely by 7%. This disparity has made the industry increasingly unviable," he said, speaking to BNE reporter Jyotishman Sharma.
Moreover, he acknowledged the state's supportive measures, including waivers on green-leaf taxes, agricultural income tax holidays, interest subsidies of 3% on loans, and incentives for manufacturing orthodox tea.
"The current Assam government, including the Chief Minister, has demonstrated a strong understanding of the industry's issues. Such measures are crucial in addressing rising costs and supporting sustainability," he noted.
Talking about Government engagement and international markets,Samudra Prasad Baruva expressed much optimism about the recent engagements with the Union Commerce and Industry Minister, Piyush Goyal. "Minister Goyal visited Assam to interact with stakeholders, including planters, manufacturers, buyers, and brokers. His visit and the resulting discussions were constructive, offering potential solutions for the industry's challenges," he stated during the interview.
The chairman of ATPA also emphasized the need to promote Indian tea internationally. He said India faces stiff competition in orthodox tea markets, especially from Sri Lanka and Kenya, which have taken over key markets like the UK due to lower costs. Domestically, CTC tea dominates consumption, but production often exceeds demand. Government initiatives promote Indian tea as one of the safest agro-based products, emphasizing minimal chemical usage. However, achieving global success requires consistent efforts.
Samudra Prasad Baruva also highlighted the potential of tea tourism as a supplementary income source for estates. He said, "Heritage bungalows, sprawling golf fields, and the picturesque charm of tea estates can attract international tourists, enhancing pride and profitability. However, without sustainable tea prices, these efforts may fall short."
When asked about worker-related issues in the tea sector, Samudra Prasad Baruva clarified that the industry is not against the welfare of tea communities.
"We have always prioritized healthcare, literacy, and infrastructure. The government, too, is stepping in, with plans to contribute to 84 state-run hospitals serving tea estates. Such initiatives reflect a collaborative effort to uplift the sector," the Chairman said, adding that small tea growers have brought a green revolution to Assam. However, they face challenges in securing fair prices for their produce.
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Explaining ATPA's decision to advocate for 100% auctioning of green leaf, he said, "Selling through auctions ensures quality-based pricing and prevents exploitation by brokers. However, growers need training in handling green leaf, as quality deteriorates if not processed within 18-24 hours. This is a critical area where support is needed."
Lauding the state's efforts, Samudra Prasad Baruva further said that with continued support from the government, enhanced international marketing, and efforts to stabilize prices, the tea industry can have a secure and sustainable future. "The Chief Minister and policymakers are taking these issues seriously, which gives us hope," he added during the interaction with BNE.
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