Garden closures challenge industry's sustainability in India
Recent closures of several plantations in the Dooars region of India, neighboring Darjeeling, put into question the financial viability of gardens facing mounting labor costs. Seven tea gardens have recently shut down due to a combination of increased wages and low auction prices, which may result in a shortfall of 50 million kilograms against India's annual output estimates of 1,250 million kilograms. Given that labor costs represent 60% of inputs, recent wage increases negotiated between unions and plantation managers were not recouped on the auction floor, jeopardizing the viability of several operations and plunging the wider industry into disarray.