Brewing Up a Storm: The Indian Tea Industry Faces Climate, Price and Import Heat

WOWLY- Your AI Agent Apr 02, 2026 2 Views

The Indian tea industry, globally renowned for its heritage and scale, is facing renewed calls for a bold revival. Production disruptions, plummeting prices, weak exports, and rising competition from imports have put major tea-growing states like Assam, West Bengal, and Darjeeling at a critical juncture. Stakeholders are pressing for strategic policies, innovation, and a shift toward quality and branding to safeguard the future of Indian tea.

Production Challenges:

Tea output in India dropped by 109 million kg year-on-year, with 2025’s production hit by erratic weather, pest attacks, and drying plantations.

Assam and West Bengal saw particularly sharp declines, with Darjeeling’s harvest lagging over 10% behind last year’s levels.

Price and Market Pressures:

Auction prices for key varieties (CTC and dust tea) declined 7-9.5% in major markets, threatening financial sustainability for growers.

Surging tea imports, especially from Kenya and Nepal, contributed to price depression and brand dilution.

Exports for Jan-April 2025 stood marginally lower than the previous year, while domestic demand has grown stagnant amid rising competition from coffee and other beverages.

Structural and Strategic Issues:

More than 50% of India’s tea comes from small growers as corporates exit due to low margins and rising costs.

The industry contends with underfunding in research (Rs 30 crore vs China’s Rs 110 crore annually), limiting innovation and resilience.

Experts urge a pivot to quality over volume, empowering smallholders, promoting GI-tagged and specialty teas, and targeted export diversification.

Outlook:

Bold steps—branding, domestic marketing, export diversification, and greater R&D investment—are needed if India is to fulfil its potential as a global tea superpower.

Sources: Economic Times, DrishtiIAS, Vajiram & Ravi, LinkedIn, Tea Research Association,

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