Rising natural gas prices hurt tea industry: NETA


Guwahati: The North Eastern Tea Association has said that the dramatic rise in natural gas prices has become detrimental to the tea industry.

The rise in natural gas prices comes against the backdrop of rising energy prices during the Russia-Ukraine conflict.
Kamal Jalan , chairman of the North Eastern Tea Association (NETA), said: “This time around, the industry has been hit hard by the multiplication of gas prices.

It has appealed to the central government to bring natural gas under GST for the long term sustainability of the tea industry.

In a notification sent to ONGC, OIL and the Director General of the Directorate General of Hydrocarbons, the Petroleum Planning and Analysis Cell stated: (GCV) based $ 6.10 / MMBTU.
The association said that it has been observed that during the last ten months, ie from July 2021 to April 2022, the price of natural gas has
exceeded Rs. 5,085.00 to Rs. 21,119.57 per 1000 litter.

This exorbitant increase in natural gas prices has increased the cost of production of tea (COP) from Rs 6 to Rs 8 per kg. Gas is used as fuel in the drying and drying of tea leaves during processing.

He said that with such an increase in cost, if the prices of tea at the farm gate level do not go up, survival would be at stake.
The association has appealed to the government to take serious note of the issue and take immediate steps to curb natural gas prices. The tea industry has already been hit hard by unprofitable prices at the farmgate level and climate change, which has damaged crops.

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