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.