Business
Tea Sector Calls for Climate and Export Support Measures
The Indian Tea Association has raised concerns over growing financial stress in the tea sector despite India achieving record tea exports of 280.40 million kilograms in 2025. The association has urged the government to introduce measures addressing weak price growth, rising production costs, climate-related challenges, and export competitiveness to safeguard the long-term sustainability of the industry.
The Indian Tea Association on Wednesday highlighted mounting financial difficulties in the tea sector even as India recorded its highest-ever tea exports in 2025.
In a statement released ahead of International Tea Day on May 21, the association said auction price realisations for tea have increased at a compounded annual growth rate of only 3.81 per cent over the past decade. At the same time, input costs including energy, fertilisers, labour, and farm-related expenses have risen sharply, placing severe pressure on the financial sustainability of tea estates.
India exported a record 280.40 million kilograms of tea in 2025, with export earnings valued at ₹8,488.43 crore. The country also produced 1,369.98 million kilograms of tea during the year, maintaining its position as the world’s second-largest tea producer and third-largest exporter. India contributes nearly 19 per cent of global tea production.
Despite the strong export numbers, the association warned that rising operational costs and climate-related challenges are affecting productivity and profitability across tea-growing regions. The ITA called for immediate government intervention to improve pricing mechanisms, strengthen climate resilience measures, and enhance export competitiveness in international markets.
Industry representatives believe that supportive policy measures and targeted financial assistance will be essential to protect livelihoods in the tea sector, which supports millions of workers and plays a major role in India’s agricultural exports.
