Indian Tea Auction Prices Rose Just 3.81% a Year for a Decade, Industry Body Says
Marking International Tea Day, the Indian Tea Association said auction prices have crept up at a compound 3.81% a year over the past decade while most estate costs are fixed, leaving a record-volume industry squeezed on margins and exposed to a dry start to 2026.
Indian tea auction prices rose just 3.81% a year over the past decade, far behind rising costs, the Indian Tea Association said, warning that record exports mask a squeeze on the estates that grow the crop.
The association set out the figures in a statement marking International Tea Day. India produced 1,369.98 million kilograms of tea in 2025, up from 1,303.53 million in 2024 and more than 13% higher than a decade earlier, and exported a record 280.40 million kilograms worth ₹8,488 crore, the ITA said.
The gap between those volumes and the price they fetch is the association's concern. Almost 80% of operational expenses on organised estates are fixed, the ITA said, so a decade of near-flat auction realisation has been absorbed against wages, energy, and inputs that do not fall when the price does. Organised estates carry costs that bought-leaf and small-grower operations do not, which leaves them least able to ride out a long stretch of slow price growth.
A dry start to the year has added to the pressure. Rainfall was 97% below normal in Assam and 87% below normal in West Bengal between Jan. 1 and Feb. 28, the ITA said, a deficit at the two states that grow most of India's tea and the kind of early-season shortfall that can pull down first-flush volume and quality.
Export markets add a further exposure. Nearly 46% of India's tea exports go to six countries, Iraq, the United Arab Emirates, Iran, Saudi Arabia, Turkey, and Egypt, the ITA said, a concentration in West Asia the association said leaves the trade exposed as tensions in the region persist. "India's export performance in 2026 may face pressure if the situation persists," said Shailja Mehta, president of the Tea Association of India, who called for continued policy support and market diversification to protect the gains of recent years.
Sources: The Sentinel, Indian Tea Association flags rising costs, climate threats and export risks on International Tea Day; The Assam Tribune, Tea exports may come under pressure in 2026 amid West Asia crisis: TAI president.