Indian Tea Industry Faces Crisis Amid Falling Production and Rising Imports

New Delhi, Aug 1 (KNN) The Indian tea industry is facing a challenging year in 2025, dealing with a mix of production issues, price drops, and rising imports that are hurting domestic producers.

According to the Indian Tea Association (ITA), tea production has improved compared to 2024’s poor output but remains lower than 2023 levels.

“All-India tea production fell by nearly 8 per cent in 2024 due to erratic weather and pest attacks. While 2025 has seen a 25.76 per cent recovery between January and May, it’s only relative to last year’s weak performance,” said Arijit Raha, Secretary General of ITA.

West Bengal and Assam, the country’s leading tea producers, saw year-on-year gains of 44 per cent and 14 per cent respectively. But when compared to 2023, production is still down by 12.89 per cent in West Bengal and 8.65 per cent in Assam.

Darjeeling tea continues to struggle, with 2025 output falling over 10 per cent below 2024 and 18 per cent lower than 2023.

June and July brought further setbacks due to severe weather. A 2°C temperature rise and reduced rainfall caused 20–25 per cent crop losses, with July expected to witness an additional 15–20 per cent decline.

Despite reduced supply, prices haven’t improved. Auction prices for CTC leaf and dust fell by 7 per cent in Assam and 9.5 per cent in the Dooars/Terai region between April and July.

This price drop is further intensified by a spike in imports—up by 82 per cent in 2024—with Kenya and Nepal accounting for the majority. The influx of cheaper teas continues in 2025, pushing down domestic price realisations.

Exports also dipped slightly, with India shipping 85.77 million kg from January to April, down 0.22 per cent from last year.

“The industry is at a tipping point,” said Raha. “Without urgent intervention, Indian tea faces an uncertain future.”

(KNN Bureau)