Guwahati: The Gatoonga Tea Garden of Assam, which has reported the best averages in CTC tea in auctions for the past two years, fetched more than Rs 400 average in CTC tea in North India auctions for the first time in the history of tea auctions.
Gatoonga Tea Estate, a member of B&A Limited, got an average of Rs 401.15 in 2022-23 auctions. In 2021-22, it topped the auctions with an average of Rs 393.79.
The garden has been selling tea in auctions since 1951. B & A Limited – the flagship Company of B&A Group – a listed company in BSE, was founded by the Late Hemendra Prasad Barooah in 1950. It was originally incorporated as the Barasali Tea Company in 1915 in Assam.
“We will definitely try to be on top. But our main focus is on making some cracking teas. The position will come automatically,” Dhruba Jyoti Dowerah, President (Tea) B&A Limited, told EastMojo.
The company has nine gardens including Gatoonga and five factories and produces around 7.5 million kg of tea per annum.
In 2018, it got an average price of Rs 262.33; in 2019, it got Rs 241.84 followed by Rs 328.57 in 2020.
The company makes only black tea and the Gatoonga Garden sells its teas in the domestic market.
“The history of B&A Limited has stood the test of time and is being renewed continuously in the product offering. With seamless efforts of our managers and workers, teas manufactured in our estates are recognised as competing best in South Bank of Assam Valley,” the 2021-22 annual report of the company says.
It further says that it has been able to do well despite adverse conditions which prevailed in the past two years arising out of the Covid-19 situation. The annual report says the company has registered higher sales and profits despite economic adversities and natural vulnerabilities and has been accepted by the buyers as a quality CTC tea producer.
Is there a secret behind topping the auctions? “There is no secret behind our successes. We are maintaining our plucking rounds in the field. And in the factory we just stick to our basics,” Dhruba explains.
He says there is stiff competition from within the group. “There is a big competition among our group gardens. Mokrung has got some inherent quality and soil support and Salkathoni has some good clonal support. In some sales they are getting some better prices than Gatoonga,” he admits.
Assam tea is generally known for the second flush, which comes in May-June, and is characterised by its boldness and robustness and is topped with classic flavours of malt and woody astringency. It is valued for its rich taste, and bright liquors and is considered one of the choicest teas in the world.
Soaring production costs without matching price realisations amidst the perpetual increase in input costs are big concerns for the Assan tea industry. Climate change issues such as declining yields, pest infestation and increased dependence on irrigation are additional worries. “Therefore, a long-strategy to address the challenges in hand and preparing the roadmap for sustenance is crucial,” chairperson of the Indian Tea Association Nayantara Palchoudhuri has said recently in Jorhat.
Coming to prices, as per available data, Guwahati auction prices in 2022 have shown a moderate increase from 2021 levels. “However, to enable the industry to remain viable, it is imperative that tea prices be remunerative keeping pace with the rising inflationary trends, which is not happening. In the current fiscal (up to the week ended 11.02.2023), 49% of North India CTC and dust sold below Rs 175 per kg at the auctions, well below the cost of production of the organised sector,” she added.
Dhruba says the company follows a good package of practices in the field and is following a continuous weighment system in the field. “In the factory, we are giving maximum emphasis on cleanliness and factory hygiene,” he said.
“We are not doing export directly. We have some large Western Indian buyers which are giving some attractive prices in the auction and forward contract. The domestic market is much bigger and we are selling our teas in the domestic market only. There are also some small local buyers which offer some fancy prices,” he added. Gatoonga however sells its teas in the Calcutta auctions only. ” We have already established our mark in the Kolkata auctions and have a dedicated set of buyers,” he added.
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