Skip to main content
ukiyo journal - 日本と世界をつなぐ新しいニュースメディア Logo
  • All Articles
  • 🗒️ Register
  • 🔑 Login
    • 日本語
    • 中文
    • Español
    • Français
    • 한국어
    • Deutsch
    • ภาษาไทย
    • हिंदी
Cookie Usage

We use cookies to improve our services and optimize user experience. Privacy Policy and Cookie Policy for more information.

Cookie Settings

You can configure detailed settings for cookie usage.

Essential Cookies

Cookies necessary for basic site functionality. These cannot be disabled.

Analytics Cookies

Cookies used to analyze site usage and improve our services.

Marketing Cookies

Cookies used to display personalized advertisements.

Functional Cookies

Cookies that provide functionality such as user settings and language selection.

Assam Hills Crushed by Imported Tea: What Are the Three Challenges Shaking the Future of India's Tea Industry?

Assam Hills Crushed by Imported Tea: What Are the Three Challenges Shaking the Future of India's Tea Industry?

2025年07月31日 00:45

1. Prologue—The Climate Crisis in a Teapot

"This year's second flush yielded only half." In late July, small-scale farmer Debananda Gogoi sighed in Charaideo, Assam. His lament is reflected in the statistics. The Indian Tea Association (ITA) announced that production in 2024 decreased by 109 million kg compared to the previous year and warned of an additional 15-20% drop in 2025.


Assam and West Bengal are the "heart" of India, the world's second-largest tea producer, but the double punch of an average temperature increase of +2°C and insufficient rainfall has stunted the growth of tea shoots and expanded pest damage. Particularly in the low-altitude Duars/Terai region, drought stress has led to a decline in quality.


2. The "Bottomless Pit" of Prices

A decrease in production usually leads to price increases, but this year the opposite occurred. By the end of July, CTC prices fell by 7% and dust tea by 9.5% at both the Kolkata and Guwahati auctions. The main cause was an increase in imports. Imports in 2024, mainly from Nepal and Kenya, increased by 82% from 44.53 million kg to 24.53 million kg. The influx of low-cost tea blends into the domestic market disrupted the pricing of domestic tea.


3. The Cries of Small Farmers and Hashtags

The market's burden falls on the most vulnerable. In Charaideo, the purchase price of fresh leaves plummeted from a peak of ₹52 to ₹18/kg, driving farmers to the streets due to unprofitability. The Times of India reported that "educated young farmers are considering leaving agriculture."The Times of India
On social media, hashtags like #SaveAssamTea and #TeaCrisis are trending. Posts calling for "subsidies for climate measures" and "setting a minimum trading price" are common. A regional account in Guwahati highlighted the crisis with the image caption "Crisis in a cup," garnering thousands of retweets.X (formerly Twitter)

 



4. Export Challenges—The Double Whammy of West Asia and the EU

Challenges continue on the export front as well. Routes to Iran and Iraq have stalled due to the Middle East situation, leaving about 15 billion yen worth of premium orthodox tea in limbo.The Assam Tribune
Furthermore, the EU plans to tighten pesticide residue standards, causing European buyers, who import 40 million kg annually, to be cautious. Assam's orthodox tea, which accounts for 25% of exports, faces increased costs for regulatory compliance.


5. Structural Issues Through Data

India's overall tea production is expected to decline to 1,284.78 million kg (-7.8%) in 2024, while the average price rises to ₹198.76/kg (+18%). The price elasticity is lower than the quantity decrease, resulting in a real decline in producer income.Moneycontrol
The background of low profitability includes ① minimum wages unchanged for over 20 years, ② soaring fertilizer and energy costs, and ③ an industry structure lacking economies of scale with 65% of small-scale farmers.


6. Policy and Industry Measures

  1. Introduction of Minimum Protection Price (MPP)
    Referring to the system introduced by the Bangladesh Tea Board in May 2025, the ITA demands a floor price setting of ₹200/kg.

  2. Strengthening Import Regulations
    The ITA requests the government to enforce minimum import prices, quantity restrictions, and stricter country-of-origin labeling. In response, the blending industry opposes, arguing it would lead to consumer price increases.

  3. Climate-Smart Agriculture
    The Tea Board subsidizes climate adaptation measures such as irrigation investments, introduction of drought-resistant varieties, and shade tree planting.

  4. High-Value Addition
    The single estate, organic, and craft tea markets are experiencing global demand growth. The Assam Tea plan sets a goal to shift the export composition from volume to price advantage by 2026.


7. SNS-Driven Consumer Behavior Change

Urban youth are increasingly interested in "sustainable tea" and "fair price." Startups promoting "Farm-to-Cup" are gaining support on Instagram, with the hashtag #BrewForChange recording 4.5 million views since April. Can the industry leverage this wave of "ethical consumption"?


8. Conclusion—Towards a Sustainable Ecosystem Supporting the Teacup

The immune function and relaxation effects, which gained attention during the COVID-19 pandemic, are strengths of tea culture. However, if the climate crisis, international situation, and price mechanism distortions continue, the "world's teacup" will be empty. The biggest question surrounding Indian tea in 2025 is whether producers, companies, governments, and consumers can unite to build a sustainable value chain.


References

Indian Tea Industry Facing Challenges: ITA
Source: https://www.deccanchronicle.com/nation/indian-tea-industry-grappling-with-challenges-ita-1894541

Powered by Froala Editor

← Back to Article List

Contact |  Terms of Service |  Privacy Policy |  Cookie Policy |  Cookie Settings

© Copyright ukiyo journal - 日本と世界をつなぐ新しいニュースメディア All rights reserved.