Drought affects Assam tea, but supply shortages boost average auction prices across India

In terms of tea production, the year 2021 has been an unusual one for Assam so far. In comparison to the same time last year, the crop deficit from January to May this year was 60 million kg.

Tea production in Assam has been severely hampered by a severe drought, despite the average auction prices across India due to scarcity. Despite the fact that garden operations have dwindled to unprecedented levels, the state has fetched a higher price during the April auctions than during the March auctions this year.

Plucking, which used to be done seven days a week, has now been reduced to three days a week due to a lack of leaves on the trees. According to Azam Monem, a full-time director at McLoed Russels, the Covid-induced lockdown has had little effect on garden activities because droughts have already destroyed them.

Though the drought in Assam lasted until last week, rain has fallen in the last seven days, preventing the drought from spreading to the second flush crop. The first flush of the Assam variety is harvested in late March, while the second flush is harvested later and is valued for its gold tips on the leaves. However, because of short supply, all India prices began to rise in April, regardless of harvest, despite the fact that an overall revenue deficit for the Assam tea industry is forecast due to volume shortages.

Despite this, average Assam tea auction prices in the state increased to Rs 185 per kg in April, compared to Rs 142 per kg in March auctions. April’s all-India average auction prices were also higher, at Rs 149 per kg, compared to Rs 132 per kg in March’s auctions. Rainfall has been highly localised this season, with variations in quantity of rainfall occurring within a few kilometres of each other.

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