Assam Broom Market Crisis: A Deep Dive into the Plummeting Prices and Its Impact

The broom market in Assam, Meghalaya, Shillong, and surrounding regions has witnessed a significant downturn in 2024, with raw material prices crashing to an all-time low. This situation has caused a ripple effect, impacting farmers, suppliers, and manufacturers across India, with the harshest impact felt by those at the grassroots level. This blog delves into the reasons behind this market crash, its consequences, and potential solutions that could help stabilize and revitalize the industry.

2024 Broom Raw Material Price Crash: A Historical Low

In 2023, broom grass, particularly Tiger hill grass, was priced between ₹100 to ₹150 per kg. However, 2024 has seen a drastic reduction in prices, with the market starting at ₹50 to ₹65 per kg and crashing further to ₹35 to ₹20 per kg. According to market analysis, the situation is unlikely to improve in 2025 unless the governments of Assam and Meghalaya intervene to address the underlying issues. This steep decline is not just a matter of economics but a significant threat to the livelihood of farmers who rely on broom grass as a primary source of income.

Why Retailers are Making More Money than Anyone Else?

Despite the market crash, retail prices for brooms have remained relatively stable, with retailers selling brooms at the 2023 rates of ₹100 to ₹120 each. This raises the question: why are retailers making more money than anyone else in the supply chain?

• Cheap Procurement: With the market crash, suppliers are able to purchase raw materials from farmers at rock-bottom prices. They then add costs such as packing, labor, and their margin before selling to manufacturers across India.
• Manufacturing Competition: As the raw material prices have dropped, the competition among broom manufacturers has intensified. Many manufacturers are rushing to sell their products at the lowest possible price to maintain sales volume. Some manufacturers with established brands have also reduced prices to stay competitive in the retail market.
• Retailers’ Advantage: Despite the drop in manufacturing costs, retailers continue to sell brooms at the previous year’s rates. The average consumer is unaware of the market crash and continues to purchase brooms at higher prices, resulting in higher profits for retailers. This situation highlights the information gap between the grassroots level and the end consumer.

Why Did the Grass Rate Plummet?

The drastic drop in grass rates can be attributed to several factors, with climate and natural growth playing a significant role.

• Natural Abundance: This year, the natural growth of Tiger hill grass or broom grass in regions like Assam and Meghalaya has been exceptionally high. The abundance of raw material has led to an oversupply in the market, causing prices to fall sharply.
• Climate Impact: The production of broom grass is heavily dependent on climatic conditions. This year’s favorable weather conditions have resulted in a bumper crop, which, coupled with the lack of adequate storage and processing facilities, has further contributed to the price crash.
• Market Dynamics: The current market dynamics suggest that without significant intervention, the situation is likely to worsen. As prices continue to fall, farmers are facing severe financial strain, leading to a potential crisis of hunger and poverty in the coming year.

What Are the Options for Assam’s Broom Industry?

Given the current crisis, there is an urgent need for the Assam government to step in and implement measures to stabilize the market. One potential solution could transform this crisis into a significant opportunity for growth and development.

• Regulate Raw Material Export: The Assam government could consider imposing regulations that restrict the export of broom grass raw materials outside the state. Instead, the government could mandate that only finished brooms be transported out of Assam. This policy would encourage local manufacturing and value addition within the state.
• Boost Local Manufacturing: By focusing on manufacturing within Assam, the state could become a hub for broom production. This move would create jobs, particularly for women and unskilled labor, boosting the local economy. Additionally, local manufacturers could capitalize on the abundant raw material supply, adding value and creating higher-quality products.
• Attract Big Manufacturers: Implementing these changes could also attract large broom manufacturers to set up their units in Assam, leading to industrial growth and increased revenue for the state. This transformation could turn the current crisis into a pivotal moment for Assam’s future, establishing the region as a key player in the national broom market.

Conclusion: A Time for Change

The current broom market situation in Assam, Meghalaya, Shillong, and surrounding areas is dire, with far-reaching consequences for farmers and the local economy. However, with strategic intervention and innovative policy changes, this crisis could be turned into an opportunity for growth and empowerment. By regulating the export of raw materials and encouraging local manufacturing, Assam could emerge stronger, providing a sustainable livelihood for its people and securing its position as a leader in the broom industry.

Keywords: Assam news, Assam broom news, Meghalaya broom market, broom grass prices, Indian broom industry, broom manufacturers, retail profit margins, market crash analysis, government intervention, local manufacturing.