‘Tea industry in stress over rising cost’
| Date :22-Aug-2019 |
THE tea industry has been under severe stress with increasing production costs and stagnating prices, which threatened the long term viability of the sector, its stakeholders claimed. Domestic consumption and exports have not picked up with rapid increase in production, leading to an oversupply situation in the sector, they said.
“The sector is reeling under cost pressures due to price stagnation in the backdrop of increasing cost of production, mismatch between demand-supply, high transaction costs, challenges for fair price discovery at the auctions and climate change problem,” Indian Tea Association (ITA) Secretary Abhijit Sharma said. The tea sector is confronted with several challenges which are threatening the long term viability of the industry, said members of CCPA.