New regulations for Kenya tea

Kenya’s tea industry is poised for major reforms following the unveiling of new draft regulations aimed at enhancing transparency, quality, and farmer earnings.

The new rules seek to resolve long-standing grievances among smallholder farmers, including delayed payments, opaque pricing structures, and inconsistent leaf quality across different regions.

The regulations will introduce clear payment timelines to safeguard farmers’ cash flow. The Act stipulates that 50 percent should be paid to farmers upfront, and the balance within three months.

The reforms also prioritize value addition, with a target of ensuring that at least 40 percent of Kenya’s tea is value-added locally rather than exported in bulk form.

Source: Citizen Digital (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

West Asian markets rescue India tea exports

Iran and Iraq emerged as key drivers of India’s tea exportsduring the first eight months of this calendar year, off-settinga decline in shipments to major markets like Russia.

Iraqwas the top buyer of Indian tea, at 35.94 million kg betweenJanuary and August this year, up from 30.99 million kg in thesame period last year.

Export to Iran rose to 6.39 million kg, against 6.30 million kg last year. However, exporters point out thatteas bound for Iran were mostly routed through Dubai, one of the largest trading hubs.

Numbers show that exports to the United Arb Emirates (UAE) during January-August 2025 soared to 31.23million kg, against 28.22 million kg in the same period last year.

Tea exports to Russia — traditionally a key market for Indian teas — dropped to 20.84 million kg in the firsteight months of this year from 26.92 million kg in the year-ago period.

Source: Business Standard (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Kenyan tea crop fell by 11.5% in first seven months

Kenya’s tea production fell by 11.5% in the first seven months of 2025 to 322.29 million kilograms, downfrom 364.13 million kilograms during the same period in 2024.

The decline was largely attributed to extended dry and cold weather conditions that suppressed yieldsacross major tea-growing regions.In July alone, production dropped by 4.37% year-on-year to 39.04 million kilograms. The East of Rift regionsaw a sharper decline of 9.8%, while the West of Rift recorded a smaller 2.8% decrease. Factoriesmanaged by the Kenya Tea Development Agency (KTDA) experienced the steepest fall of 13.7%.

Rainfall levels averaged below 12 millimeters per day in some tea zones, coupled with lowtemperatures ranging between 8°C and 21°C, resulting in reduced crop performance.

The impact of lower output extended to the Mombasa auction,where tea sales dropped 25.6% year-on-year to 25.41 millionkilograms in July. The average auction price declined to US$2.05 per kilogram from US$2.21 a year earlier, while prices inKenyan shillings averaged Kes 264.89 per kilogram, reflecting

a 7.7% decrease.

Despite the price drop, market absorption improved to 55% from 40% in the previous year due to widerquality differentials. Smallholder teas fetched a higher average of US$2.32 per kilogram but remainedbelow the US$2.77 recorded in July 2024.

Demand from key markets such as the UK, Russia, and Sudan remained weak, though Pakistanmaintained steady purchases, accounting for 36% of Kenya’s tea exports at 20.06 million kilograms.

In July, tea exports rose 5% year-on-year to 55.57 million kilograms. However, cumulative exports for thereview period declined 7% to 330.19 millionkilograms, influenced by reduced global demand, shippingdelays along the Red Sea, and lower European buying.

It is projected that total tea production in 2025 will reach about 553 million kilograms, down from 594 millionkilograms in 2024.

To boost export earnings, the first-ever auction for orthodox teas was introduced,featuring 2,925 packages, about 91,800 kilograms, expected to attract bids between US$3 and US$10 perkilo.

Source: Africa Business News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

India Tea output rose 14% in July

India’s tea output rose 14 per cent in July to 171.72 million kg compared with 150.36 million kg a year ago, despite a decline in output in the southern parts of the country due to adverse weather conditions.

The cumulative production during the January -July period this year was 641.44 million kg against 564.44 million kg a year ago.

Tea production in South was down by about a tenth in July at 20.36 million kg over 22.79 million kg a year ago. In Assam, the total production was up 24 per cent during July at 98.57 million kg over79.55 million kg a year ago. North India saw an increase in output at 5.11 m kg (4.43 m kg).

Category wise, the production of CTC teas increased by 12.43 per cent to 150.99 million kg in July 2025 against 134.29 million kg a year ago. The output of Orthodox teas was up 31 per cent at 18.13 m kg (13.85 million kg) and green teas by 17 per cent at 2.60 million

kg.

Source: Hindu Business line (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Tea consumption rises in KSA

Nowadays Saudis are changing how they consume tea. Many people are looking for convenience while on the go, and prefer to drink it cold.

Tea is now being evaluated on source and quality of leaves, rather than just brand name.

The preference has always been for hot tea, but iced tea is a new target for the market.

The rising popularity of tea houses in cities including Riyadh and Jeddah shows a growing appreciation for the drink. In the past tea was served warm and infused with aromatic spices including mint and saffron.

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Saudi Arabia is among the 20 largest tea-consuming countries in theworld, with each person consuming nearly 900 grams annually, on average.

Source: Arab News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

US Tea drinkers may take their lumps with hefty tariffs

Tea has seen a significant surge in popularity in the United States. Tea is offered in a diverse range of preparation styles: sweet tea brewed with sugar, bubble tea, or simply

enjoyed plain and over 159 million US citizens drink tea on any given day.

Rising tea prices combined with the US administration’s unpredictable tariffs are expected toimpact consumers.

The US imported $550 million worth of tea in 2024,up from $514 million in 2023. China, the world's largest exporter, shipped approximately $55.5 million worthof tea to the US last year, ranking fourth among US suppliers behind Japan, India and Argentina.

The Tea Association of theUSA has urged the US administration to waive tariffs on tea.

Source: China Daily (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Indian tea continues to struggle

The Indian tea industry is battling a tough season in 2025, grappling with multiple challenges – from production shortfalls and falling auction prices to a surge in imports that’s hurting domestic producers.

While production figures for the first half of 2025 show a rebound from the dismal 2024 levels, they still fall short of 2023, raising deep concerns about the industry’s sustainability.

All-India tea production dropped by nearly 8 per cent in 2024 due to erratic weather and pest attacks. Although there has been a recovery of around 25.76 per cent between January and May this year, much of that growth is relative to last year’s poor crop.

West Bengal and Assam – the two major tea-producing states – registered 44 per cent and 14 per cent growth respectively over 2024. However, the recovery has been modest for big growers, with production stilldown by 12.89 per cent in West Bengal and 8.65 per cent in Assam when compared to 2023 levels.

Darjeeling tea, globally renowned for its distinctive flavour,remains a serious concern. Its production in 2025 lags 10.34per cent behind 2024 and 18.24 per cent behind 2023.Worsening matters, the June–July 2025 period witnessed

severe climatic stress. A 2°C rise in temperatures andreduced rainfall led to 20–25 per cent crop losses across keytea regions, with July expected to record a further 15–20 percent decline.

This supply stress has not translated into better prices. Between April and July 2025, CTC leaf and dustauction prices fell by nearly 7 per cent in Assam and 9.5 per cent in the Dooars/Terai regions. The situationhas been aggravated by a massive surge in imports – up by 82 per cent in 2024, with Kenya and Nepal

accounting for 74 per cent of the total. The influx of lower-priced teas continues in 2025, depressing pricerealizations and pressuring Indian producers.

On the export front, India shipped 85.77 million kg of tea from January to April 2025, a marginal dip of 0.22per cent compared to last year. While North India posted gains, South India saw a sharp fall in volumes.

The industry stands at a critical juncture, and unless urgent steps are taken to address climate impacts,price instability, and unchecked imports, the future of Indian tea remains uncertain.

Source: The Statesman (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka 

Tea and EU’s pesticide logistics

The European Union’s increasingly strict pesticide regulations are reshaping the rules for imported tea. As more active substances are banned for agricultural use within the EU, maximum residue levels (MRLs) for those same substances in imported foods are being lowered – often to the limit of detection (LOD). This logic aims to ensure consumer protection but creates challenges for producers and traders outside the EU.

Tea production encompasses a wide range of traditional techniques, many of which involve high heat. Pan-fried green teas and smoked black teas, such as Lapsang Souchong, rely on thermal treatments essential to their sensory profile. However, these methods can also lead to the formation or accumulation of chemical residues that are not the result of pesticide use.

Two substances in particular – anthraquinone and polycyclic aromatic hydrocarbons (PAHs) – have become focal points in regulatory discussions. According to recent studies, anthraquinone can be introduced into tea through atmospheric deposition or combustion-related contamination during processing. Meanwhile, PAHs are formed during smoking or when organic material is exposed to incomplete combustion. Both should be considered process-related contaminants.

While the EU regulatory framework does distinguish between contaminants and pesticide residues, there are recurring cases where the classification of specific substances does not align with production realities. This disconnect can lead to disproportionate compliance burdens and unintended barriers to marketaccess – particularly for traditionally processed teas.

The legal framework governing chemical residues in tea within the EU is split between two core regulatory paths. This distinction determines not only the applicable limits but also the flexibility of enforcement. 

Anthraquinone, although its use as a pesticide was banned in the EU in 2008, and its MRLs were subsequently tightened, it continues to be regulated as a pesticide residue.  This classification persists even when the compound is demonstrably not applied agriculturally.For tea producers and importers, this rigidity creates compliance hurdles.

By contrast, when process-related contaminants are misclassified as pesticide residues, the consequences can be severe. Even trace amounts may lead to non-compliance, and for traditionally produced teas, this can result in de facto import bans.

Source: STiR Coffee & Tea (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Taiwan launched first AI tea production line

Taiwan's launched its first AI-integrated black tea production line. The initiative helps address labor shortages and the aging workforce. With the AI driven production line, manpower requirements can be reduced by two-thirds, or even to a fully unmanned

operation. The daily processing capacity for tea leaves has increased from four to eight tons.

The production line also features automated equipment for tea leaf storage and transport, rolling, loosening, fermentation, and drying. Heat is generated during the transportation of tea leaves from the plantation to the processing facility. If the process takes too long, the leaves can overheat and redden, leading to lower tea quality.

To address this, a transport and storage system with air-blowing channels toprovide cool air during transit has been designed. A shade net is also installed above the system to help maintain tea leafquality.

AI can intelligently manage the tea production process, including monitoring tea leaf color, equipmentoperation, and sensing humidity, temperature, and weight. The technology helps reduceerrors caused by manual operation and enhances tea quality.

The AI system can also automatically archive production data and upload it to a cloudbasedmanagement platform, enabling managers to monitor production progress in real-time.

Taiwan exported nearly 7,000 tons of tea to theUS, valued at approximately NT $706 million (US $22 million),accounting for nearly 30% of total tea exports. Black tea and greentea made up the majority of these exports.

Source: Taiwan News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Matcha shortage push prices up

Record temperatures in Japan have curbed matcha green tea production this year, straining supplies and driving prices to all-time highs amid booming global demand for the trendy beverage.

The Kyoto region, which accounts for about a quarter of Japan’s production of tencha— the stemmed leaves dried and ground into matcha — was hit by severe heat waves last summer during Japan’s hottest year on record, which led to weak yields in the recent April-May harvest.

Global demand for matcha has surged in recent years, driven by millennials and Gen Z buyers seeking healthier choices, with hip cafes globally offering matcha lattes, smoothies, and desserts.The finely ground tea is prized as an antioxidant and for higher caffeine content than other green teas.

Japan produced 5,336 tons of tencha in 2024, anearly 2.7-fold increase from 10 years earlier. Japan’s green tea exports, including matcha, rose 25 per cent by value to ¥36.4 billion (RM1 billion) in 2024,driven largely by growing demand for powdered teas such as matcha.

By volume, Japan’s green tea exports rose 16 per cent.Tencha prices have climbed to record highs, with a May auction in Kyoto fetching ¥8,235 per kg, a 170 percent increase from a year earlier and well above the previous record of ¥4,862 set in 2016.

Source: Malay mail (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka