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