Tea Production in North India covering Assam and West Bengal for 2012 is set to register a sharp drop due to a prolonged dry spell and rising temperature across Assam and West Bengal. The crop loss is set to lead to cash flow problems for the tea companies.

Data compiled by the Indian Tea Association confirm rainfall deficit for West Bengal at around 31-42 per cent during January-March 2012 as compared to the same period in 2011.