Indian tea prices are currently being impacted by several factors, ranging from a robust domestic demand to loss in crops due to adverse climate conditions. The latter resulted in a production decrease of 18.11% for the period of January to May 2024. Assam and West Bengal, which together contribute to nearly 83% of the annual tea production in India, both saw losses here.
Between January and March 2024, carry-forward stocks allowed for the prices of that period to be lower in comparison to the same period last year. However, due to the increasing shortfall in production, prices started to increase started in April 2024. Highlighting how price volatility directly impacts the livelihoods of tea farmers and workers, who in spite of higher tea prices do not benefit directly from them.
At the moment there is an expected transition from El Niño to ENSO-neutral conditions, which may improve crop prospects, yet this only underscores the critical need for stable tea prices to support farmers, who are often at the mercy of weather factors beyond their control. Fair tea prices are also essential for farmers to invest in climate resilience, ensuring long-term sustainability and security for their livelihoods.
ENDS