NETA urges Assam to revise solar policy and boost domestic tea consumption

Guwahati, Feb 11: The North Eastern Tea Association (NETA) has called for a crucial amendment to Assam’s Solar Policy to better align with the tea industry’s seasonal production cycles.

Speaking at the Chairman’s Dinner in Golaghat on February 8, NETA Chairman Ajay Dhandharia pointed out that tea production is largely dormant from December to February, with minimal output in March. Despite this, solar plants at tea factories continue generating power, leading to excess energy being fed into the grid without any financial compensation.

Under the current policy, excess energy injected into the grid beyond 90% of the energy consumed in a billing cycle goes unpaid, and there is no provision to carry forward unused energy to offset demand during peak production months. “This policy creates a situation where tea factories cannot monetize surplus solar energy, making the return on investment from solar installations slow and discouraging further adoption of renewable energy,” Dhandharia said.

NETA has urged the state government to amend the policy, making surplus solar energy profitable during the off-season, which would incentivize more tea factories to invest in solar power. Dhandharia also proposed switching from the Exim Metering system to Net Metering for Assam’s tea factories. Under Exim Metering, tea producers pay ₹10 per KWH for grid electricity but only receive ₹5.33 per KWH for energy exported to the grid. By switching to Net Metering, the financial impact would be drastically reduced, making solar energy investments more financially viable.

Dhandharia also touched on the pressing issue of boosting domestic tea consumption. He cited a study by BDO India LLP, revealing that India’s per capita tea consumption stands at just 840 grams—including non-tea drinkers. NETA’s ‘Mission 1 Kilo’ aims to raise per capita consumption to 1 kg, a target that could alleviate many of the industry’s challenges. “The government has now allocated funds for domestic tea promotion, and it’s crucial to market tea as a wellness and lifestyle beverage, especially to younger consumers,” Dhandharia stated.

Additionally, he raised concerns about rising competition from countries like Kenya, Bangladesh, and Nepal, which have been challenging India’s dominance in the global tea market. He pointed out that while India is still the largest producer and consumer of black tea, market uncertainties, price fluctuations, and increased imports have put the industry under strain.

“We saw significant losses in late 2024 due to low prices, despite strong early-season gains,” Dhandharia remarked, suggesting that allowing producers the flexibility to choose between auction and private sales would help stabilize the market.

Addressing agriculture issues, Dhandharia warned that pests like Green Fly and Helopeltis, along with diseases such as Fusarium, are severely threatening tea crops. The continuous use of certain pesticides has created resistance, rendering existing solutions ineffective. He urged the government to add more cost-effective, powerful chemicals to the Plant Protection Code (PPC).

The labor shortage faced by Small Tea Growers (STGs) during peak harvest periods also needs urgent attention, Dhandharia said. With fewer workers available, some STGs are resorting to sickle harvesting, which compromises the quality of tea, negatively impacting prices.

On a national scale, Dhandharia called for the recognition of tea as India’s National Drink. Highlighting the recent US FDA acknowledgement of tea as a “healthy” beverage, he emphasized the need for extensive social media campaigns and public education to promote tea’s health benefits. “Scientific studies have shown that tea helps regulate cholesterol, reduces triglycerides, and provides cardiovascular benefits,” he noted, citing a 2023 study linking regular tea consumption to lower COVID-19 severity and mortality rates in India.

Also Read: Assam police held most wanted militant involved in 2021 Army convoy ambush in Manipur

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