In 2023, Darjeeling tea production is anticipated to reach a historic low, estimated at 6.1-6.3 million kg—a 9% decrease from the 2022 output of 6.9 million kg. Data from the Calcutta Tea Traders Association indicates that between January and November, approximately 6 million kg of tea was produced. This decline is attributed to the closure of around 10 Darjeeling gardens and a shortage of workers affecting tea plucking operations. Industry experts note that this could represent the lowest "normal year output" since 2017 when production was 3.2 million kg, albeit affected by a strike.
Adding to the industry's challenges, the average price realization during auctions has experienced a notable dip of 7.6%, reaching Rs 315 per kg—its lowest since 2015 when it stood at Rs 290 per kg. However, insiders caution against relying solely on average auction prices as an indicator of producers' earnings. They highlight that over 80% of Darjeeling tea is sold privately, with only a little over 20% being auctioned.
Several factors contribute to the 2023 production slump, including garden closures and a labor shortage. Climate change is also cited as a significant factor, and the industry is urged to prioritize quality enhancement amid these challenges, especially considering that annual production averaged around 11-12 million kg in the 1990s.