STAFF REPORTER
GUWAHATI: The Indian Tea Association (ITA) today marks International Tea Day (ITD) by highlighting both the achievements and growing concerns surrounding India's tea industry, while stressing the need for immediate and coordinated action to protect one of the country's most significant sectors. While the industry continues to strengthen India's presence in the global tea market, the association states that several structural, climatic and market-related challenges continue to place pressure on its long-term sustainability.
The association points to India's record tea export performance in 2025 as a major achievement for the sector. Tea exports reach 280.40 million kilograms and generate a value of Rs 8,488 crore, reaffirming India's position in the international market. However, the industry body states that the success story also carries concerns beneath the surface, as several long-standing issues continue to affect tea production and business operations across the country.
According to the association, the organized estate sector, which remains a major contributor to premium tea production, rural employment and environmental preservation, faces increasing difficulties. The sector continues to operate under significant economic stress as rising operational expenses, climate-related disruptions and weak price growth affect the financial stability of many estates.
The ITA states that tea prices continue to show slow growth despite substantial increases in production costs. Auction prices across the country register a compound annual growth rate of only 3.81 per cent over the past decade, while the prices of fertilisers, fuel and energy continue to rise sharply. It notes that almost 80 per cent of operational expenses in organised estates remain fixed, further limiting the ability of producers to absorb financial pressures.
The association also highlights the widening cost gap between organized tea estates and Bought Leaf Factories (BLFs). It warns that in the absence of adequate regulatory safeguards, the disparity continues to threaten the sustainability and competitiveness of organised tea producers.
Climate conditions emerge as another major concern for the tea industry. The association cites recent data from the India Meteorological Department (IMD) showing severe rainfall shortages in key tea-producing regions during the early part of 2026. Assam records a rainfall deficiency of 97 per cent between January 1 and February 28, while West Bengal experiences an 87 per cent departure from normal rainfall patterns.
The prolonged dry weather affects the health and growth of tea bushes across many plantations and creates additional challenges for tea producers. Although rainfall levels later return to near-normal levels in Assam and rise above average in West Bengal between March and mid-May, the association states that early weather disruptions already impact tea estates and crop conditions.
The association also refers to changes in tea production over recent years. It states that India's tea production grows by more than 13 per cent between 2015 and 2025, reaching 1,369.98 million kilograms in 2025. Production had earlier fallen to 1,303.53 million kilograms in 2024 before witnessing partial recovery.
Global developments also continue to create uncertainty for exporters. The association notes that nearly 46 per cent of India's tea exports depend on markets such as Iraq, the UAE, Iran, Saudi Arabia, Turkey and Egypt. Political tensions and disruptions in global shipping routes continue to increase insurance costs and create currency-related risks.
The industry body states that longer shipping routes increase freight charges and additional Emergency Fuel Surcharges imposed by shipping companies further raise export costs. These developments continue to affect India's export competitiveness in international markets.
The association also raises concern over tea imports. Tea imports reach 39.65 million kilograms in 2025, and although this figure remains lower than the 44.53 million kilograms recorded in 2024, the association states that the trend remains a matter of concern. It notes that tea imports from Nepal exceed the annual production level of Darjeeling tea, which stands at approximately 5.3 million kilograms in 2025.
Reaffirming its commitment on International Tea Day, the ITA calls for balanced regulatory measures, stronger investment in climate-resilient cultivation practices and diversification of export destinations to ensure a sustainable future for the tea industry.
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