A History of Assam c24.22

c24.22

In the early days of the industry the prices obtained for Assam tea were extraordinarily high. The crop of 1839 yielded eight shillings a pound; and when the price fell below two shillings it was said that tea could no longer pay. But the price has continued to fall steadily; it was 1s. 5d. in 1878, 1s. in 1882 and 9½d. in 1886, while in 1903 it was only 8½d. for tea produced in the Brahmaputra valley and 6½d. for that from the Surma valley, and yet, on the whole, there has generally been a fair margin of profit. Between 1893 and 1898, however, the extension of cultivation was so rapid that the supply of tea quite outstripped the demand, while the cost of placing it on the market was enhanced by the closing of the mints and the increased value thus given to the rupee, in which the coolies' wages were paid. These adverse conditions caused the prices obtained for the tea to fall below the cost of production, and, for a time, the industry entered once more on a period of depression. Every effort was made to reduce expenditure and to open new markets; and this, coupled with the practical stoppage of new extensions, placed the industry once more on a sound footing. There was a fresh set-back after the war, but this has been followed by a period of remarkable prosperity. For almost the first time in the history of the industry, prices have shown a marked upward tendency, and they are now as high as they were forty years ago. In 1923 the average price realized for tea from the Brahmaputra valley was 15 annas 10 pies and from the Surma valley 13 annas 11 pies per pound.