Tea industry in Assam and West Bengal faces crisis amid falling prices

The Tea Association of India has warned that the tea industry in Assam and West Bengal is facing a precarious situation due to sharply declining auction prices and environmental challenges. Shailja Mehta, President of the Tea Association of India, noted that the sustainability of the industry is at grave risk as prices have plummeted over the last five to six weeks.

Analysis of auction centers in Kolkata, Guwahati, and Siliguri shows significant price drops between July and mid-August. In Kolkata, the average CTC sale price fell by approximately 17%, dropping from Rs. 291.27 to Rs. 238.77. Guwahati saw a decline of about 15%, while Siliguri recorded an 8% decrease.

The downturn is attributed to intense market pressures compounded by flash floods, excessive heat, and severe pest and disease infestations that have hampered crop production during the current season. Despite these challenges, production figures from the Tea Board, India indicated a marginal increase of approximately 5% for North India through June 2026, suggesting the price drop is not caused by an oversupply.