Guwahati: The Indian Tea Association (ITA) has sounded an urgent call for structural reforms, financial support, and policy alignment to address the deepening crisis in India’s tea sector.
Speaking at the ITA’s 142nd Annual General Meeting in Calcutta on October 9, Chairman Hemant Bangur warned that the organised tea sector is under “unsustainable financial stress,” with operating margins down over 60% since 2020 and nearly 80% of estates reporting cash losses last year.
The event was attended by Dr. Ravi Kota, Chief Secretary, Assam, as Chief Guest, along with Avanindra Singh, Secretary, Labour Department, West Bengal, and C. Murugan, Deputy Chairman, Tea Board of India.
Bangur highlighted that the financial viability of the Indian tea industry has sharply eroded due to stagnant prices, rising costs, and global overproduction.
“Operating margins have declined 60.2% between 2020 and 2024, while cash wages during this period increased 49.7% in Assam and Bengal. Last year, around 80% of estates reported cash losses, underscoring the deepening challenges. Due to declining prices this year, only a handful of estates will achieve positive EBITDA, eroding the industry’s financial foundations further,” he said.
Global production rose by 352 million kg to 7,053 million kg in 2024, creating a surplus of 418 million kg, while India’s own production increased by 77 million kg as of July 2025. “Optimising production is the only way to restore demand-supply balance,” Bangur cautioned.
Rising imports, especially from Kenya and Nepal, doubled in 2024 and are “flooding the domestic market with low-duty teas that depress prices and hurt producers.” He also flagged the re-export of blended teas under Indian origin labels as a threat to brand integrity and called for a Minimum Import Price to protect domestic producers.
Bangur urged faster regulatory approvals for pesticide label claims and FSSAI notifications to support growers, noting that climate change, erratic weather, and pest outbreaks are worsening production challenges.
Citing floods and landslides in North Bengal, he stressed the need for adaptive solutions and announced ITA’s partnership with Solidaridad Asia to promote regenerative tea farming in four member estates.
The ITA Chairman also praised Assam and West Bengal’s renewable energy policies and emphasized helping estates transition to sustainable energy practices. He called for a minimum sustainable price mechanism, rationalisation of the 100% dust auction mandate, and a fair green leaf pricing regime for small growers and organised estates.
On exports, Bangur urged revising RoDTEP benefits from 1.4% to 5-6% to enhance competitiveness, and greater promotion in West Africa and the Middle East.
He stressed premiumisation of orthodox teas and said India exported 256 million kg of tea in 2024, a 10% rise year-on-year.
Bangur highlighted technology adoption as key for the sector’s future, including AI analytics, IoT soil sensors, drone-assisted spraying, and automation, which can cut costs by up to 20% and improve efficiency. On branding, he advocated youth-centric promotion of iced, peach, and matcha teas, urging repositioning tea as “a lifestyle choice—healthy, diverse, and aspirational,” with RTD tea projected to grow at 5.8% CAGR through 2034.
He also called for a financial rescue package for Darjeeling estates, transport subsidies for landlocked regions like Cachar and Tripura, and reinstatement of PDS foodgrain allocation in Assam. ITA continues to work with UNICEF, Solidaridad Asia, ILO, and Twinings to improve worker welfare, promote good agricultural practices, and enhance livelihoods in tea communities.
“While the path ahead is not without trials, with vision, collaboration, and courage, this industry will emerge stronger,” Bangur said, outlining priorities including optimising production, regulating imports, accelerating MRL approvals, supporting Darjeeling, subsidising transport, and driving innovation.
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