Indian Tea Industry Faces Turbulent Times: A Brewing Crisis
The Indian Tea Industry, guided by the Indian Tea Association, is encountering a critical period due to a production shortfall, declining prices, and rising tea imports. These challenges, fueled by adverse weather conditions, have placed significant strain on major tea-growing regions, impacting the industry's financial viability and growth prospects.
- Country:
- India
As the Indian tea industry stands at a pivotal juncture in 2025, the Indian Tea Association (ITA) has highlighted a series of challenges threatening its viability. The sector is grappling with a dramatic production shortfall, falling prices, and a surge in tea imports, all of which are affecting its growth trajectory.
The industry witnessed a significant production shortfall in 2024, dropping 109 million kilogrammes compared to 2023. Unfavorable weather conditions and pest attacks have exacerbated the situation, especially in West Bengal and Assam. The notable decline in production levels in Darjeeling amplifies concerns among large growers.
Further exacerbating the situation, the average daily temperature rise and decreased rainfall have created dry conditions, adversely impacting output. Concurrently, auction prices for popular variants like CTC and dust tea have plunged, posing threats to financial sustainability, while imports have surged by an astounding 82% in 2024 compared to the previous year.
(With inputs from agencies.)
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