Tea Industry on Edge: Inflation & Slow Growth Elicit Urgent Plea from Traders Association Chief
The Indian tea industry is grappling with multiple challenges including sluggish domestic consumption, high food inflation, and a slow post-pandemic recovery in exports, revealed Sanjay Shah, Chairman of the Federation of All India Tea Traders Association (FAITTA), during the association’s 10th annual meeting in Guwahati.
Highlighting a significant shift from loose tea to packet tea, Shah emphasized the detrimental effects of rising food prices on consumer demand. “High inflation reduces purchasing power, causing consumers to opt for cheaper alternatives,” he noted.
Shah also voiced concerns regarding the market’s capacity to absorb recent price hikes driven by last year’s increases in raw material costs. Despite a 46% surge in tea prices in 2024, production also inched up to 1,393 million kilograms from 1,366 million kilograms in 2022. On the export front, after a downturn in 2020 and 2021, there was a glimmer of recovery with total exports reaching 228 million kilograms in 2023.
While the domestic market remains challenging, Shah expressed cautious optimism about the gradual improvement in Indian tea exports following years of stagnation.
Original Story https://www.indiatodayne.in/assam/story/tea-industry-facing-challenges-amidst-inflation-and-slow-growth-says-tea-traders-association-chief-1083666-2024-09-01?utm_source=rssfeed
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