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Tea production in South India has fallen by an alarming 43.18 per cent in May this year compared to same period in 2015. Nationally the drop is only 18.19 per cent. But this shortage of supply is not reflected on tea prices, thanks to the abstinence of buyers from the Kochi Tea auctions. Owing to a 22 million kilogram fall in production, the industry says prices should have been 10-15 per cent higher than the current price of around Rs 95 per kg in South India. A severe cash crunch is brewing in South Indian tea plantations which would affect the livelihood of lakhs of employees in tea plantations.
