Indian Tea Association urges price stability, relief for Darjeeling sector

The Indian Tea Association (ITA), the apex body of tea trade, on Thursday urged the government to bring in price stability in tea through production control and export support, regulate imported tea with a minimum import price, speed up pesticide approvals and clarity on maximum residue limit (MRL) in tea . ITA chairman Hemant Bangur, who was speaking at the 142nd annual general meeting, also sought a relief package for Darjeeling tea industry and transport subsidy for landlocked regions.

He noted that, while India has shown resilience in turbulent times, the tea sector is under acute financial stress. “Over 80% of organized tea estates reported cash losses last year, and 2025 has brought further decline in prices triggering negative EBITDA margins. This threatens long-term viability, investment capacity, and
workforce stability,” he cautioned.

Globally, tea production surged by 352 million kg, resulting in a surplus of 418 million kg in 2024. India’s own production, while having dipped in 2023, has rebounded in 2025, with a surplus forecasted. Mr Bangur warned of unsustainable price realizations and advocated for optimized production and a sustainable price regime to restore equilibrium.

With small tea growers now contributing over 54% of India's total production, the ITA chairman called for a fair and sustainable green leaf pricing model, and a level playing field to offset the statutory and cost disadvantages faced by organized sector producers.

At the auction level, North India’s average tea price saw a sharp decline of Rs. 16.87/kg Jan-August 2025, severely affecting profitability. Mr. Bangur reiterated the industry’s long-standing appeal for price stability and policy interventions. Despite domestic pressures, tea exports grew by 10% last year to 256 million kg, positioning India as the third-largest global exporter.

However, concerns remain. The new U.S. tariff regime threatens the competitiveness of Indian teas in the American market. Mr. Bangur urged the government to resolve trade barriers and revise RoDTEP incentives to 5–6% to support orthodox tea exports, especially to traditional markets such as Russia, Iran, and the UK, as well as emerging destinations in West Africa and the Middle East.

Meanwhile, the industry continues to face challenges from low-duty imports, especially from Kenya and Nepal, which have doubled in volume, depressing domestic prices and compromising quality. Mr. Bangur demanded stricter import safeguards and action against blended re-exports falsely labelled as Indian teas, a practice particularly damaging to Darjeeling's global brand image.

Responding to the rising threats of climate change, including the recent devastating floods in North Bengal, Mr. Bangur announced ITA’s partnership with Solidaridad Asia to promote regenerative tea farming in alignment with Regen-Agri standards. He lauded progressive renewable energy policies introduced by Assam and West Bengal, facilitating transition to clean energy through net-metering and photovoltaic adoption.