Assam And Bengal Tea Industry Faces Severe Crisis

(MENAFN- KNN India) Guwahati, Sep 2 (KNN) The tea industry in Assam and West Bengal, one of India's oldest and most iconic sectors, is battling a severe crisis.

Falling auction prices, weak demand, rising imports, and export uncertainties have put millions of livelihoods at risk.

The Indian Tea Association (ITA) has called for urgent government intervention to prevent long-term damage.

Auction centres in Kolkata, Guwahati, and Siliguri have seen sharp price drops since July. Tea Board data shows North India's average auction prices fell nearly 6 per cent between April and July 2025, with further declines later. In some cases, rates fell by up to Rs 74 per kg.

Rising production-up 27 per cent in West Bengal and nearly 5 per cent in Assam-has worsened the supply glut. Much of the produce remains unsold, straining producers financially.

The ITA has renewed its demand for a Minimum Sustainable Price (MSP) to ensure fair returns and guard against cheap imports.

Unpredictable weather and pest infestations have hit tea estates hard. The ITA has urged faster approvals for safe pesticides and quicker clearance of food safety standards to help farmers manage crop losses effectively.

Imports surged 57 per cent in the first half of 2025, led by cheaper teas from Kenya. The ITA has asked for stricter rules, including a minimum import price, to protect domestic producers.

On exports, North India recorded growth, but South India saw declines. The recent 50 per cent US tariff on Indian goods has raised fresh concerns.

The ITA has sought higher export incentives and better logistics support to stay competitive globally.

A Parliamentary Committee has already supported several ITA demands. The association warns that without immediate action, the industry's future is at stake.

(KNN Bureau)

MENAFN02092025000155011030ID1110007439