Extreme weather conditions have significantly reduced tea production in India, particularly in Assam and West Bengal. The first and second flush crops, which produce the best quality tea, have been severely affected, putting pressure on the industry’s cash flow. Rising input costs, including rising wages and food prices, are adding to the financial challenges facing the industry. According to data from the Tea Board of India, insufficient rainfall and excessive heat at the start of the season, followed by heavy rains in June and July, have largely hampered crop growth. This has resulted in a sharp drop in production, with Assam facing an 11 per cent drop in production and West Bengal facing a further 21 per cent drop till July compared to the same period last year.

To make it worse, weakened tea bushes and severe pest and disease attacks are emerging as major threats. Tea plantation reports indicated an additional 10 per cent production loss in West Bengal and three per cent in Assam during August compared to last year. Meanwhile, India Meteorological Department data shows significant deviations in rainfall patterns. West Bengal saw 50% to 80% less rainfall between March and May, while Assam saw a 10% to 30% decrease.

Although the southwest monsoon has brought abundant rains to the region, weather deterioration and another sharp drop in rainfall in August have soured the outlook for tea growers. The Tea Association of India believes that erratic weather has also adversely affected the health of the tea plants, leading to crop losses. Severe pest infestations, including Helopeltis, Looper Caterpillar, Green Fly and Red Spider Mites, have affected many tea gardens. In addition, diseases such as Fusarium dieback, bacterial blight, and red rust have become widespread and are affecting production.

There is another side to this whole situation. A recent report by the Comptroller and Auditor General (CAG) has pointed out that wages paid to tea plantation workers in Assam are inadequate, with the implementation of labor laws and labor welfare provisions. There are several shortcomings and areas of concern, which, in turn, are adding to the crisis. The tea industry also faces restrictions on the use of chemicals to control pests.

Currently, only 33 chemicals have been approved for use under Food Safety and Standards Authority of India (FSSAI) guidelines, and 26 more are awaiting approval. As a result, the industry struggles to effectively deal with pest infestations. The industry has nothing against FSSAI’s efforts to ensure safe and compliant production of tea. But the tea industry has urged the West Bengal state government to ban the sale and distribution of banned chemicals in the tea-growing areas of North Bengal. Without such measures, the industry risks a competitive disadvantage vis-à-vis other tea-producing regions. Apart from these, the industry is in dire need of financial incentives (the Assam government has already offered some) to help the sector through tough times. However, rain gods alone cannot help the industry out of this crisis.