'Climate change has emerged as a major threat for tea industry', says Indian Tea Association

Tezpur, March 10: "Over the past five years, our challenges have intensified, becoming both serious and formidable. Climate change has emerged as a major threat not only for our industry but for humanity as a whole, which is altering the precipitation distribution and prevalence of pests and diseases, underscoring the far-reaching impact of the alarming issue on our tea cultivation practices," said the vice chairman of the Indian Tea Association (ITA), Suneel Singh Sikand while addressing the 134th Annual General Meeting (AGM) of the Assam Branch Indian Tea Association (ABITA) at Thakurbari Planters' Club near Rangapara town in Sonitpur district on Saturday.

Expressing concern over the issue, Sikand also stated that the commercial viability of plantations is under stress owing to attacks by unfamiliar pests and consequent declining yields. Investments in irrigation and pest control have surged in recent years but the focus has now shifted to finding affordable and durable solutions.

"To combat droughts and pests, intensified irrigation measures are crucial, and the industry will require support from the Central and State governments to achieve this. Additionally, the emerging carbon trading market presents a lucrative opportunity for the industry to capitalise on its climate-positive footprint and generate revenue through carbon credit sales. In a significant step towards sustainability, ITA has partnered with Solidaridad through an MoU to promote regenerative agriculture practices," Sikand said.

He added that currently five pilot projects are underway, focusing on carbon sequestration and carbon foot-print assessment, which will yield mutual benefits for tea producers and the environment and contribute to a more sustainable future for the industry.

On the other hand, highlighting the adoption of solar energy for generating power in the tea sector, the ITA vice chairman also mentioned that the Assam Renewable Energy Policy 2022 marks a significant initiative by the State government to facilitate the adoption of renewable energy, allowing consumers to install grid-connected solar power plants of up to 100 per cent of their sanctioned load with a cumulative cap of 80 per cent of the distribution transformer's capacity. The policy's EXIM metering and increased reimbursement rate (from 75 per cent to 100 per cent of APPC rate) has encouraged tea companies, particularly in the Barak Valley, to transition to solar energy. The experiences of companies in Cachar that have successfully adopted solar technology in their estates offer invaluable lessons, he said.

He also stated that the Association has been constantly taking up the issue with appropriate authorities so that the net metering mechanism is extended to the tea industry. Additionally, the Association will also seek clarification on excess solar energy generation beyond 90 per cent of grid consumption during the upcoming Assam Electricity Regulatory Commission (AERC) hearing. These considerations by the State government will provide a clearer framework for tea estates to adopt renewable energy sources and contribute to a more sustainable future.

Talking about the decline in production due to the climate change issue, Sikand mentioned that the total production across India had reached 1,285 million kg as of December 2024, a decrease of approximately 109 million kg compared to the same period during 2023.

"The global tea industry is currently facing a significant oversupply challenge that major tea-producing nations must urgently address. In 2023, worldwide tea production totalled 6,727 million kg, exceeding consumption by 376 million kg. Over the past decade, global tea production has risen by 28 per cent, while global consumption has decreased, largely due to increased competition from alternative beverages. This situation highlights the necessity for tea producers to gain a deeper understanding of consumer preferences and adapt their production strategies accordingly," Sikand highlighted.

Meanwhile, extending his congratulations to the State government for the success of Advantage Assam 2.0, he said that it was a summit that showcased Assam's vast potential as a leading investment destination.

- By Correspondent