Dibrugarh, Oct 28 (PTI) The biggest challenge faced by Assam tea industry is stagnation in prices coupled with high cost of production and low productivity, according to Nalin Khemani, the chairman of Bharatiya Cha Parishad (BCP), an association of tea planters and factory-owners.

The competitiveness of the industry in terms of productivity must be improved, Khemani said while addressing the Annual General Meeting of the BCP.

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The output of a person in Assam stands at only 2.2 kgs per man-day as compared to six kgs per man-day in Kerala.

While cash wage in the northeastern state is Rs 232 besides ration and in-kind benefits worth over Rs 350, the figure is Rs 427.35 (without ration and in-kind benefits) for Kerala, Khemani claimed while addressing the Annual General Meeting of the BCP on Thursday night.

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The cost of labour per hectare in running a tea garden in Assam is Rs 787.5 as against Rs 341.8 in the southern state, he added.

The average auction price of a kilogram of CTC tea in Guwahati was Rs 182 in 2021, while the value output of a person per day in the tea industry in Assam is Rs 409, Khemani said.

''The cost to the company (composite value of wage and social responsibility) of a man-day beyond a certain point is an economic impossibility for the industry. Over 60 per cent of the total budget of a tea company is allocated to wages. This should be a primary concern of the industry.

“But we also need to equip our workforce with the correct processes, training, technology and tools for the output to rise," the BCP chairman said.

Tea production can be increased by planting new varieties of plants and scientific and mechanised harvesting, he said.

“The time has come for implementation of mechanised harvesting to improve productivity of the Assam tea industry. It has been the backbone of the rural economy for decades and provides livelihood to over a million workers and several lakhs of small tea growers,” he said.

The BCP, a 78-year-old organisation, has 103 members across Assam, consisting of tea estates and bought leaf factories.

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