Guwahati, 26 August: The Indian tea industry is grappling with plummeting prices as a surge in tea imports — particularly from Kenya — disrupts the market and sparks alarm among Assam's planters. Tea imports from Kenya soared by 45% in the first half of 2025, reaching 6.69 million kg between January and June, up from 4.61 million kg during the same period last year.
According to the Tea Board of Kenya, the African nation exported 13.7 million kg of tea to India in 2024 — a staggering 288% rise over the previous year. This influx, combined with a 20% increase in Assam’s own production, has flooded the market, dragging prices down sharply.
Prices Dip Amid Oversupply
“At the Guwahati auctions, average prices from April to August are lower by around ₹20 compared to last year,” said Dinesh Bihani, secretary of the Guwahati Tea Auction Buyers Association. While better quality teas are still fetching decent prices, lower-grade teas are facing dwindling demand. He also noted that ex-state sales have been subdued, with further price reductions observed.
Last year, erratic weather had led to crop losses, pushing average prices up to ₹253 per kg — the highest since the pandemic. In contrast, this year's average auction price stands at ₹225.59.
Concerns Over Credibility and Tax Evasion
Planters are raising serious concerns over the long-term damage being done by cheap, duty-free imports. Sandeep Singhania, president of the Tea Association of India, warned that some exporters are blending low-cost imported teas with Indian varieties and marketing them as Indian-origin — a practice that misrepresents the product and risks damaging the global reputation of Indian tea.
“Many of these imports are entering the domestic market illegally, evading the 100% import duty and undercutting genuine producers with cheaper, indistinguishable blends,” Singhania said.
Total tea imports in 2024 jumped by 82% to 44.53 million kg, with Kenya and Nepal accounting for nearly three-quarters of the volume. The industry is now calling for stricter regulations and improved tracking to protect Indian tea from being diluted — both literally and figuratively.