Published on: September 11, 2025
ASSAM TEA PRICES FALL AMID RISING IMPORTS
ASSAM TEA PRICES FALL AMID RISING IMPORTS
NEWS – Assam, the largest tea-producing state in India, is facing a crisis as falling prices threaten the livelihood of thousands of small tea growers. A surge in cheaper tea imports from Africa, particularly Kenya, has added to the woes of local producers.
HIGHLIGHTS
Tea and Its Cultivation
- What is Tea? A beverage crop grown from Camellia sinensis.
- Conditions Required: Warm and humid climate, 20–30°C temperature, annual rainfall of 150–300 cm, well-drained acidic soils, and gently sloping terrain.
India and Global Tea Industry
- India’s Position: Second-largest producer after China.
- Major Tea States: Assam, West Bengal, Tamil Nadu, Kerala, Tripura.
- Global Producers: China, India, Kenya, Sri Lanka.
Assam’s Role in Tea Production
- Assam produces about 50% of India’s tea — 649.84 million kg in 2024.
- The sector contributes nearly 5% to Assam’s GSDP and sustains lakhs of workers.
Rising Imports from Africa
- Imports from Kenya surged by 225% in 2024 (17.13 million kg).
- Between Jan–June 2025, 6.69 million kg reached India, higher than 4.61 million last year.
- Concern: Cheaper teas are being blended with Assam tea and sold under its name, undermining brand value.
Role of the Tea Board of India
- Established in 1954 under the Tea Act, 1953.
- Functions: Promotion of exports, welfare schemes, research, quality control, regulation of imports.
Challenges Faced by Indian Tea Industry
- Oversupply and declining domestic prices.
- Rising imports and blending issues.
- Low productivity in some regions.
- Climate change impacts on yield and quality.
Significance & Way Forward
- Tea is a major agricultural export, with India exporting 254.67 million kg in 2024.
- Need for stricter import regulations, branding protection, and support for small growers.
