Guwahati: Three leading industry associations—Assam Bought Leaf Tea Manufacturers Association (ABLTMA), Bharatiya Cha Parishad (BCP), and North Eastern Tea Association (NETA)—have warned that recent regulatory decisions and rising imports are pushing the Indian tea sector into “severe financial distress.”
The joint memorandum, addressed to Arunita Phukan Yadav, Deputy Chairperson and Executive Director of the Tea Board of India, flagged three urgent issues: FSSAI compliance, the mandatory routing of 100% dust grades through auctions, and the doubling of imports.
Over-Regulation Hurting Growers
The associations stressed the need for fast-tracking label claim extensions for pesticides such as Acetamiprid and Imidacloprid, arguing that Assam’s growers are grappling with pest outbreaks—particularly green fly infestations—that cannot be managed with the limited list of approved chemicals.
They noted that India is a Codex member and that both Imidacloprid and Cypermethrin already have global MRLs (Maximum Residue Limits). “More than 90% of Assam’s compliance issues would be resolved if MRLs for Acetamiprid and Imidacloprid are notified,” the letter stated, while urging the Tea Board to withdraw its communication to FSSAI that mandated compulsory testing for six off-label pesticides.
Cash Flow Crunch, Factories Unable to Pay Growers
The industry trade bodies criticized the Tea Board’s July 25 order, mandating 100% auction of dust grades, calling it “against the fundamental right to do business” and contradictory to the government’s Ease of Doing Business policy.
According to the memorandum, unsold teas at the Guwahati Tea Auction Centre (GTAC) have risen to 36% this season, compared to 23% last year, while the average price realization of CTC teas is down by ₹26.55 per kg. In Sale 34 alone, 42% of teas remained unsold, leading to mounting warehousing costs, banking interest, and delayed payments to small growers.
“This regulation has put us in great financial distress. We know our business and will sell through auctions when prices are better—but forcing 100% dust through auctions is unjustified,” the associations argued, demanding that the order be withdrawn till December 31, 2025.
Import surge a threat to Indian tea survival
The letter also raised alarm over a two-fold jump in imports, which climbed from 25.21 million kg in 2023–24 to 50.14 million kg in 2024–25, with bulk inflows from Kenya (17 mkg) and Nepal (15 mkg).
Imports from Nepal, which attract zero duty, were described as the “biggest concern,” while discrepancies between Kenyan export figures and Indian import data triggered suspicions of undeclared or misreported trade. “If teas from African countries are entering India without duty or by other means, it will kill the Indian tea industry,” the associations cautioned, urging the formation of a task force to investigate imports and re-exports and to introduce software monitoring of trade flows.
Learn from Coffee Board
Drawing parallels with coffee, the memorandum argued that deregulation of marketing helped the coffee sector thrive, while tea continues to be “over-regulated.” “We wonder why so much over-regulation in tea. Are such high regulations serving any purpose?” the associations asked.
The three organizations said that the Tea Board’s role should be that of a facilitator, not a regulator. “Time and again, we appealed to the Tea Board not to intervene in running our business. Transparency already exists in private sales. Forcing auctions is not the solution,” the memorandum concluded.
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