Guwahati: Assam's tea production touched a record 675.17 million kg in 2017 but the industry is worried that price realisation at the farm-gate level is low and in some cases does not even cover the cost of production.

Figures for 2017 released by the Tea Board of India on Wednesday reveal that of the 675.17 mkg produced in Assam in 2017, the Brahmaputa Valley contributed 627.98 mkg while Cachar in Barak Valley produced 47.19 mkg. The country's total tea production for the year was 1,321.76 mkg.

"Production touched an all-time high but the price realisation at the farm-gate level has remained low and in some cases it is below the cost of production. Unless prices increase at the farm gate, record figures of production and exports do not mean much," Bidyananda Barkakoty, adviser for North Eastern Tea Association, told The Telegraph.

Sources said the average cost of production for the organised sector is Rs 180 and the average price for tea in 2017-18 was Rs 141.29 at the Guwahati auctions.

Barkakoty said as the bulk of a producer's tea is sold through auctions, where prices are determined by the market forces of demand and supply, the producer does not have the scope to pass on the increase in the cost of production to the consumer.

He said production by small tea growers has touched about 47 per cent in North India, which is also an all-time high for small growers. India's tea export has also achieved an all-time high - 251.91 mkg in 2017 (January to December) and 256.57 mkg in the 2017-18.

He said the Centre and state governments should take immediate steps to increase the consumption of tea by generic promotion in the domestic market.

Sources said export of origin-wise data is not captured as most of the tea is exported in blended form. However, about 20 mkg is exported from Inland Container Depot at Amingaon, which is Assam tea only.

"The tea industry and the Tea Board of India should make all-out efforts to improve the quality of plucking of tea leaves which will improve the overall quality. Otherwise, small tea growers and organised sector tea industry will not survive. This is an alarm bell for the government, tea industry and the Tea Board," Barkakoty added.

The tea industry says in the last 10 years, costs have galloped at a compound annual growth rate of 10 per cent, outpacing the price realisation growth which stands at 6.4 per cent only, proving that prices have declined in real terms. Retail prices also need to move up and improve returns to producers at the farm gate level.