Guwahati: CTC and bought leaf tea both fetched record prices at auction
Renowned globally for its richly coloured and aromatic tea, Assam's tea industry, provides livelihoods to millions, with many others directly or indirectly dependent on the plantations. The state is famous for both Orthodox as well as the CTC (Crush, Tear, Curl) varieties of tea.
ANI
Jun 05, 2024 20:02 IST
Guwahati (Assam) [India], June 5 (ANI): Tea auction centre in Guwahati set a new record on Wednesday when CTC (crush, tear, curl) tea leaves sold by grower Hookhmol fetched a record price of Rs 723 per kilogram.
As per auction centre officials, these lots were sold by brokerage J Thomas & Co and bought by Arihant Tea Co & Shree Jagdamba Tea Syndicate.
Another feat was reached today when good quality tea grown by small tea growers sold at Rs 436 per kilogram, the highest price for a bought leaf tea garden.
These teas were made by Parry Agro-owned Rajajuli bought leaf tea factory and sold by brokerage Paramount Tea Marketing Pvt. Ltd. The tea leaves were purchased by Baruah Innovation of Guwahati.
It is notable that even teas produced by small tea growers are commanding high prices.
"This development not only signifies the recognition of quality teas but also bodes well for small growers who can now anticipate better prices for their green leaves," said Dinesh Bihani, Secretary, Guwahati Tea Auction Buyers Association.
Today's record tea prices could encourage more and more small growers to focus on producing quality green leaves, at a time when many raised quality concerns in small gardens.
"The transparent nature of the auction system ensures that such high prices are achievable, which might not be the case in private sales," Bihani further said.
Tea is the lifeline industry of Assam and 90 per cent of the state's total exports are tea alone. The livelihood of millions is dependent upon the tea plantation industry.
"Gradually, our CTC tea prices have been fetching high price points year-on-year. Our annual average rates per kg was around Rs 432 last year," Bhaskar Hazarika, the owner of Hookhmol, told ANI.
"In 2009, I entered into this tea business. Since then, our tea is getting recognised, and hence the prices are rising," Hazarika said.
He believes that mass market tea producer in times to come will find difficulty in surviving, and it is the premium tea maker that will tend to flourish.
"I understood this trend and hence entered into premium tea business," Hazarika added.
Renowned globally for its richly coloured and aromatic tea, Assam's tea industry, provides livelihoods to millions, with many others directly or indirectly dependent on the plantations. The state is famous for both Orthodox as well as the CTC (Crush, Tear, Curl) varieties of tea.
About 25 per cent of the teas that are produced in the state are of dust grade and the rest are CTC and orthodox.
The tea plantation sector in Assam reached a crucial milestone of 200 years in 2023. The industry is not in the best of health and has been struggling with issues such as rising production costs, relatively stagnant consumption, subdued prices, and crop quality issues.
It also faces the challenge of holding its ground in a competitive global market. The tea business is cost-intensive, with an estimated 60-70 per cent of the total investment being fixed in cost terms.
Assam now produces nearly 700 million kg tea annually and accounts for around half of India's overall tea production. The state also generates annual foreign exchange equivalent to Rs 3,000 crore. (ANI)
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