Production soars, Green tea prices crash 

Guwahati, Aug 26 : As the tea industry heaved a sigh of relief following good rain in the last one month, the green tea price has crashed by hundred per cent since last night. 

There are 64,000 small tea growers in Assam and they produce almost 30 per cent of the total tea production of the state. 

''But the bought leaf factory owners, in league with the major tea companies, colluded to cause this artificial crash even if there is no decrease in retail price of tea,'' said G K Khanikar, President of the All Assam Small Tea Growers Association. 

According to Khanikar, the price of green leaf per kilogram had gone down to Rs 7 in South Upper Assam and Rs 8 in North Upper Assam. 

The small tea growers were getting till last week Rs 14 per kilogram. Prices had gone up to Rs 21 during April when production was low due to lack of rain. 

As the rain helped bumper cropping, the price crashed as almost all the factories were filled up to their capacity. In fact excessive rainfall during the current month has enabled the state’s tea industry almost level its production with that of last year.

Industry sources said till June some gardens were behind up to 20 per cent from the harvest of last year. 

But the favourable weather condition had helped a bumper cropping in the current month, particularly in the Assam Valley. 

The deficit faced in cropping by the tea industry had now been made up and some gardens were at par with last year's harvest, sources said. 

''Although the drop in price is seasonal, this time the factory owner’s proponed it taking advantage of the lack of control of the state government,'' Khanikar said. 

''If there is a bumper crop and prices go down there should be significant change in the retail market also. But that is not happening,''he added. 

Although their August harvest is good, the Cachar (Barak Valley) gardens were lagging behind by 8 to 10 per cent compared to last year. The North Bank gardens were either at par with or ahead of their last year's harvest as of today, sources said.

The Assam Valley tea gardens had recorded a total cropping of 132.6 million kgs till June this year, against 132.4 kgs it produced between January and June last year.

While, the Cachar tea estates recorded a total cropping of 16.5 million kgs till June this year, against 17.8 million kgs between January and June last year. 

Last year, till August, the Assam Valley gardens recorded a harvest of 299.7 million kgs, with August cropping standing at 77.6 million kgs, sources stated. 

This morning there was an urgent meeting both at Biswnath Chariali as well as in Moran to discuss about the price. 

The tea growers are pressurizing the factory owners to keep the price above Rs 10.

''With no one controlling the price it is now free for all. Sadly the same government levy of 20 paisa per kilo gram cess continues,'' he said.