GUWAHATI: The North Eastern Tea Association (NETA) has said that while the export of Assam tea to countries such as Russia, Iran and China might get affected owing to the COVID-19 pandemic, new markets for exporting tea based on its health benefits could be explored.
“Tea is an immunity booster and therefore it is likely that its consumption will increase. It is time to explore new markets for exporting tea based on its health benefits. Besides, this is also an opportunity for producers to sell tea directly through online platforms,” a statement issued by Bidyananda Barkakoty, adviser, NETA, said.
About 18 per cent of India’s production is exported while the rest is consumed domestically. The CIS countries, including Russia, import about 50 million kg of Indian tea followed by Iran about 40 million kg, China about 12 million kg, US about 11 million kg, UK about 10 million kg, UAE about 10 million kgs, Germany about 8 million kg, followed by other countries.
The association, while making a SWOT (strengths-weaknesses-opportunities-threats) analysis of the Assam tea industry due to the impact of the COVID-19 lockdown, however felt that it would take some more time for the supply chain to stabilise.
“The crop loss in March and April would continue till May because of the necessity of skiffing of overgrown leaves owing to the lockdown. The estimated total crop loss will be about 80 million kg. The tea gardens have resumed operations from April 15 with 50 per cent workforce. Therefore, the crop loss and the revenue loss will further increase,” Barkakoty said.
“Tea produces are facing huge liquidity crunch. The total revenue loss from March 23 to April 14, 2020, is to the tune of Rs 1,200 crore,” he said.
The association said that the out of home consumption was almost negligible because of the lockdown and the trend would continue even after partial relaxation of the restrictions.
“There was no harvesting of tea leaves for three weeks followed by skiffing of more than 35 per cent tea bushes and now only 50 per cent workforce is deployed as per government order. Therefore, the crop loss may be much more than estimated,” Barkakoty said.
He however said that the second flush teas would be harvested in the months of May and June. “Every year second flush teas fetch better price. There are no leftover stocks with tea traders because there was no supply of tea in March and very small quantity of tea will move out of Assam in April,” he said.