Unseasonably high temperatures combined with inadequate rainfall have severely reduced yields across the tea lands of North India. The India Tea Association (ITA), citing Tea Board of India statistics, writes that climate change poses an immediate threat as heat stunts leaf growth amid increased pest infestations that lead to increased levels of pesticide residue.
Temperatures have been rising in North India for more than a decade. According to India Meteorological Department data, Guwahati has experienced a daily increase in temperatures averaging 4 degrees Celsius since April 6. The Times of India reports temperatures of 37 to 38 degrees Celsius (100 degrees Fahrenheit) across Assam. In Darjeeling, average temperatures have increased by 0.5 degrees Celsius as annual rainfall has declined by 152cm.
India began the year three million kilograms short of last year’s 16.2 million kg January harvest, a pattern that continued through April. ITA members estimate that Darjeeling produced 39% less raw tea, with portions of the Dooars reporting double-digit declines compared to spring 2022. In 2022 Darjeeling produced only 6.6 million kg, a two-decade low. In contrast, Assam produced 700 million kg in 2022, accounting for 52% of India's tea production.
The Darjeeling Tea Research & Development Center reports that the harvest season is now a month shorter than in the 1990s. The average yield per hectare in 2000 was 542 kg, compared to 350 kg per hectare today. It will take a combination of sustainable practices at the farm level and optimal use of fertilizers and renewable energy to restore economic vitality to the tea industry, writes the Press Trust of India.
Rising pest infestations are of special concern because the European Union (EU) added anthraquinone (MRL 0.02 mg per kg) to its list of regulated pesticides. The EU is currently evaluating proposals to further reduce maximum residue levels (MRLs) and to withdraw approval of alpha-cypermethrin, a common ingredient used in making insecticides.
Indian traders say the EU’s extremely low thresholds are non-tariff barriers to trade that threaten $100 million in annual exports. In response, the EU maintains that MRLs should be set at the lowest achievable level consistent with good agricultural practice.
Anshuman Kanoria, chairman of the Indian Tea Exporters Association, told The Economic Times that production costs are driving up prices, leading to declining exports to Germany, Japan, and the United Kingdom.
The ITA has asked the Ministry of Commerce to establish a minimum price that buyers must pay for raw leaves and finished tea. According to ITA, auction prices of Darjeeling tea have been more depressed than the overall West Bengal Average price, recording a CAGR of only 1.86% since 2014.