The Indian Tea Association (ITA), the apex body of the country’s tea trade, has urged the government to ensure price stability in the sector through production control, export incentives, and stricter import regulations.
At its 142nd annual general meeting held on Thursday, ITA Chairman Hemant Bangur also called for a relief package for the struggling Darjeeling tea industry and a transport subsidy for landlocked tea-producing regions.
Bangur noted that while India’s tea industry has displayed resilience in challenging times, it is currently facing severe financial distress. “Over 80% of organized tea estates reported cash losses last year, and 2025 has brought further decline in prices, triggering negative EBITDA margins.”
“This threatens long-term viability, investment capacity, and workforce stability,” he cautioned.
He observed that global tea production had risen by 352 million kg in 2024, leading to an overall surplus of 418 million kg. India’s production, which had dipped in 2023, has rebounded in 2025, also heading toward surplus.
Bangur warned that this oversupply could result in unsustainable price realizations and stressed the need for optimized production levels and a sustainable price regime to restore market balance.
With small tea growers now accounting for over 54% of India’s total tea output, the ITA chairman advocated for a fair and sustainable green leaf pricing model. He said this would help address the statutory and cost disadvantages faced by organized sector producers and ensure equity across the value chain.
At the auction level, North India’s average tea price declined sharply by ₹16.87 per kg between January and August 2025, severely affecting profitability. Despite these domestic challenges, India’s tea exports grew by 10% last year to 256 million kg, maintaining its position as the world’s third-largest tea exporter.
New trade concerns have emerged. The latest U.S. tariff regime threatens the competitiveness of Indian teas in the American market.
Bangur urged the government to address trade barriers and revise RoDTEP (Remission of Duties and Taxes on Exported Products) incentives to 5–6%, especially to support orthodox tea exports to traditional markets such as Russia, Iran, and the United Kingdom, as well as emerging destinations in West Africa and the Middle East.
The ITA also raised alarm over the growing volume of low-duty tea imports, particularly from Kenya and Nepal, which have doubled in recent years. Bangur said these imports were depressing domestic prices and affecting quality standards.
He called for stricter import safeguards and action against the mislabelling of blended re-exports as Indian teas, a practice that has significantly damaged the global reputation of Darjeeling tea.
Addressing environmental challenges, Bangur highlighted the increasing impact of climate change, including the recent floods in North Bengal. He announced ITA’s partnership with Solidaridad Asia to promote regenerative tea farming practices aligned with Regen-Agri standards.
He also commended the renewable energy initiatives of Assam and West Bengal, which are enabling tea producers to transition toward clean energy through net-metering and solar photovoltaic adoption.
MOST POPULAR | Gold Prices Cross $4,000 as Investors Seek Safety in Market Uncertainty
