Assam tea industry in distress; ITA calls for immediate intervention

Staff Reporter

GUWAHATI: The plight of the tea industry is pathetic due to the combined effects of the plummeting auction price, adverse climatic conditions, low-cost imports, pest infestation and harsh US tariffs. Since Assam is a leading player in the tea industry, the state feels the pinch of the declining industry.

Taking the vulnerability of the situation, the Indian Tea Association (ITA) has called for immediate intervention from the central government. ITA said, "A grim reality is unfolding in the Assam and West Bengal tea industry, where plummeting auction prices due to increased arrival in auction and dull demand have sparked widespread unrest, putting the sustainability of the industry at grave risk. North India's three prominent tea auction centres in Kolkata, Guwahati and Siliguri witnessed a notable decline in tea prices from mid-July to mid-August this year. The auction average price has plummeted, with a significant decline ranging from Rs 32 to Rs 74 per kg, signalling intense market pressure."

An ITA source said, "The persistent decline in tea prices, influx of imports and exports, and market volatility caused an existential threat to the industry in Assam and West Bengal. The United States is a significant market for Indian tea, accounting for a considerable share of US total exports of 17 million kg in 2024. Till May this year, Indian exports to the US stand at 6.26 million kg. The recent imposition of a 50 per cent tariff by the US on Indian goods is likely to impact Indian tea exports to the USA. Given the diverse spread of Indian exports across 21 key countries that account for 88 per cent of total exports combined with the global allure of Assam and Darjeeling varieties, set the stage for expansion into fresh territories, thereby broadening the country's tea export footprint."

The ITA has requested the government to consider implementing a minimum sustainable price for made tea to protect the interest of the industry, foster fair competition and ensure the sector's long-term sustainability and growth. The ITA is also concerned against the backdrop of price decline. The industry is concerned about the surge in low-cost imports from Kenya. This influx has further depressed domestic market dynamics.

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