STiR coffee and tea magazine

STiR coffee and tea 17 India's Tea Crop Swells, But Prices Paint a Complex Picture Between January and June 2025, India harvested 469.7 million kilos of tea, a 13% jump over the same period last year. North India, home to Assam and Darjeeling, produced 352.8 million kilos, while South India, led by Tamil Nadu, Kerala, and Karnataka, contributed 116.9 million kilos. Assam led the charge with close to 200 million kilos in the first half of the year, reinforcing its role as the backbone of Indian tea. West Bengal's Terai and Dooars bounced back strongly, cushion- ing a minor dip in Darjeeling. Production in Darjeeling remained modest at 1.9 million kilos, but its reputation as the "champagne of teas" kept it valuable in global markets. Internationally, India's surge contrasts with mixed fortunes elsewhere. Sri Lanka gained around 8 million kilos, Bangladesh, too, showed an uptick, but Kenya — a heavyweight in exports — slipped by nearly 34 million kilos, tilting global supply lines in India's favor. The Price Puzzle But in the auction halls, optimism is harder to find. North Indian auctions in July averaged INR229 ($2.60)* a kilo, well below last year's INR250-300 ($2.63–3.44) range. South India, too, saw prices dip even as volumes rose. Different categories tell different stories. Cut-Tear-Curl (CTC) teas, the workhorse of India's domestic market, are weighed down by oversupply. Orthodox teas, however, continue to shine, often fetching more than INR229 per kilo in auctions. Darjeeling remains untouchable, with July averages soaring past INR670 per kilo. Global Ripples For international buyers, India's expanded crop is a relief at a time when Kenyan exports are shrinking. Still, producers worry that higher availability will not automatically translate into higher earnings. India's tea gardens are buzzing this year. The warehouses are full, the auctions busy. Yet behind the bustle, the numbers reveal a far trickier picture — one of plenty in the fields but pressure in the markets. 469.7 Total India Sri Lanka Kenya (Apr.) Malawi Bangladesh (May) 2025 2024 500 450 400 350 300 250 200 150 100 50 0 135.7 188.7 31.4 12.6 414.1 127.9 222.6 33.4 11.5 Major Tea Production - January to June (in Million Kgs.) With Sri Lanka yet to reach its pre-crisis strength, Indian orthodox teas are finding more space in the Middle East, Russia, and Europe. Buyers short on Darjeeling are shifting toward Assam orthodox and Nilgiri whole-leaf teas. Planters' Dilemma "The tea industry of North India is presently passing through turbulent times," said Bidyananda Barkakoty, adviser, North Eastern Tea Association. He pointed out that the average price realization at the Guwahati Tea Auction Center up to August 14 was lower by INR25 per kilo compared to last year, while unsold teas climbed to 35% from 24% a year ago. Imports, too, have surged, rising to over 50 million kilos in 2024–25 compared to about 30 million kilos in 2022–23, mainly from Kenya and Nepal. On the production side, Assam's output up to June was 5% higher than last year, with all-India production up 13%. By mid-August, production was nearly at par with 2024. Barkakoty's warning was blunt: "If tea prices do not rise in September, all tea estates and many factories will face a heavy cash crunch." By Roopak Goswami *US$1.00 = INR88 Tea Report

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