Assam Tea Sales Soar to ₹2,800 Crores at Guwahati Auction Centre in FY 2024-25

India's tea industry has witnessed mixed results in 2024, with production figures showing a decline in several regions, while auction performance, particularly at the Guwahati Tea Auction Centre, reflects positive trends. The Tea Board of India's production estimates up to September 2024 reveal a significant drop in output compared to previous years.

Decline in Tea Production:

India's total tea production for September 2024 stood at approximately 164.62 million kgs, marking a reduction of 3.15 million kgs from 2023 and a steeper drop of 31.34 million kgs compared to 2022. In the Assam Valley region, production decreased slightly to 85.03 million kgs, down by 0.07 million kgs from 2023 and a substantial 22.21 million kgs from 2022. Similarly, the Cachar region saw a decline in production, with a fall of 0.21 million kgs from 2023 and 0.85 million kgs from 2022.

The total tea production in North India up to September 2024 reached 749.06 million kgs, which represents a reduction of 62.22 million kgs from the same period in 2023.

Guwahati Tea Auction Centre’s Performance:

In contrast to the production dip, the Guwahati Tea Auction Centre has performed well in the 2024/25 season. The total quantity of tea sold saw an increase, reaching 111.03 million kgs, up by 8.10 million kgs from 2023/24. This surge in sales was accompanied by a rise in average price per kg, which jumped from ₹200.08 in 2023/24 to ₹252.83 in 2024/25.

The total value of tea sold in the 2024/25 season reached ₹2807.18 crores, reflecting a significant growth of ₹747.84 crores from the previous year. This increase underscores the growing demand for Assam's premium tea varieties in the domestic and global markets.

Implications:

Despite the challenges in tea production across various regions, the positive auction performance in Guwahati highlights the resilience of Assam's tea industry. The rise in both sales volume and average price per kg suggests that premium quality Assam teas continue to hold strong appeal in the market, contributing to the overall growth in tea value.

It is noteworthy to mention that while production has faced setbacks, Assam’s tea industry remains robust, buoyed by the positive auction outcomes. The ability to maintain strong market performance despite fluctuating production levels signals a promising outlook for the industry. How the sector adapts to production challenges will be crucial in sustaining its growth in the coming years.