5 days ago
Tea Auction Price Drop Worries Eastern India Planters
Tea growers in eastern India are worried because the prices they receive at auctions have fallen.
The biggest price drop was in Kolkata, followed by Guwahati and Siliguri.
The Tea Association of India says this could make it harder for tea businesses to survive.
It says floods, very hot weather, insects and diseases have damaged tea production.
Production was slightly higher through June than during the previous year.
However, production at association member estates fell in July and may fall further.
Flooded tea bushes in Assam may need time to recover.
Tea exports were also lower than last year.
Growers are additionally facing higher wages, bonus payments and other costs.
Tea prices fell sharply at auction centres in Kolkata, Guwahati and Siliguri from July to mid-August.
Average CTC prices declined 17% in Kolkata, 15% in Guwahati and 8% in Siliguri.
The Tea Association of India said floods, excessive heat, pests and diseases have disrupted production.
North Indian production was up 5% through June 2026 but fell 8% at member estates in July.
Exports dropped about 23 million kilograms, or 18%, during January-June 2026 compared with the previous year.
- Who
- The Tea Association of India, led in the statements by president Shailja Mehta, raised concerns on behalf of planters.
- What
- Tea auction prices declined sharply across three eastern Indian auction centres, raising concerns about the sector's sustainability.
- Where
- The affected auction centres are in Kolkata, Guwahati and Siliguri, serving tea-producing areas in Assam and West Bengal.
- When
- The decline occurred over roughly five to six weeks, from July to mid-August; export comparisons cover January-June 2026.
- Why
- The association cited falling prices, floods, excessive heat, pest and disease infestations, weaker exports and rising input costs.
Key facts
- Kolkata auction price
- The average CTC price fell from ₹291.27 in Sale 26 to ₹238.77 in Sale 34, a drop of ₹53, or 17%.
- Guwahati auction price
- The average CTC price fell from ₹264.89 in Sale 26 to ₹221.57 in Sale 34, a decline of about 15%.
- Siliguri auction price
- The average CTC price fell from ₹201.80 in Sale 27 to ₹182.30 in Sale 34, a decline of about 8%.
- Production through June
- North Indian tea production increased by about 16 million kilograms, or 5%, compared with the previous year.
- July production
- Tea Association of India member estates reported an 8% production decline in July 2026.
- Exports
- Tea exports were about 23 million kilograms, or 18%, below the previous year's level during January-June 2026.
- 2025 export record
- The tea industry exported a record 285.53 million kilograms in 2025.
Quotes
Prabir Bhattacharjee
Secretary general of the Tea Association of India
“Three prominent tea auction centres in Calcutta, Siliguri and Guwahati have witnessed a notable decline in tea prices during the past one-and-a-half months. The plummeting auction prices in the past five to six weeks have sparked widespread concern and put the sustainability of the tea industry at grave risk.”
telegraphindia.com
“The auction price figures of north Indian tea industry recently reflect a precarious state of affairs in the industry, coupled with the onslaught of flash floods, excessive heat and severe pest and disease infestations hampering production of the crop during the current cropping season”
CNBC TV 18
Sources
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