ITA says Indian tea industry experiencing acute financial crisis

Although the Indian Tea Association (ITA) has pledged to provide 19 per cent for tea workers, it has disclosed that the depressed price situation made it difficult for tea garden managements to fulfil their financial commitment on the eve of the festive season.

In a Press statement, the ITA said the Indian tea industry has been experiencing a period of acute financial crisis over the last few years with tea prices not able to keep pace with the rising cost of production.

ITA also said that Indian tea prices over the last decade have grown at a CAGR (Compound Annual Growth Rate) of around 4 per cent while costs of vital inputs like coal, sulphur etc have grown at a CAGR of 9 per cent to 15 per cent during the same period.

“But tea prices have remained stagnant, wages of tea garden workers have increased significantly,” an official of ITA said.