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The Tea Association of India on Friday said that the Auction Price figures of the 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.
In an official statement, Shailja Mehta, President of the Tea Association of India, stated that a grim reality is unfolding in Assam and West Bengal's tea industry, where plummeting auction prices in the last five to six weeks have sparked widespread concern, putting the sustainability of the tea industry at grave risk. "A granular sale-to-sale analysis for the financial year 2026-27 reveals a significant downturn in tea auction prices recently. North India's three prominent tea auction centres, viz. Kolkata-Guwahati-Siliguri witnessed a notable decline in tea prices from July to mid-August (Sale 27 to 34). The auction average prices have plummeted, with a significant decline ranging from Rs.19 to Rs. 53, signalling intense market pressures. It is observed that in CTTA (Kolkata), the average CTC sale price has dropped from Rs. 291.27 in Sale no. 26 to Rs. 238.77 in Sale no. 34, indicating a drop of Rs. 53 or around 17% in a period of less than two months," she said. It also stated that, accordingly, in GTAC (Guwahati), the average CTC Sale price plummeted from Rs. 264.89 in Sale no. 26 to Rs. 221.57 in Sale no. 34, indicating a drop of around 15% during the same period. "The STAC (Siliguri) has also registered a drop of around 8% during the same period, descending from Rs. 201.80 in Sale no. 27 to Rs. 182.30 in Sale no. 34. However, this phenomenon cannot be attributed to an oversupply situation. While the production figures released by Tea Board, India during the current cropping season till June 2026 shows a marginal increase of crop of around 16 Mkgs or 5% for North India compared to last year, the trend has been disrupted due to severe flood in Assam coupled with excessive heat and extreme pest infestation in the other tea growing regions of North India," the Tea Association of India said. It further stated that, as per the data received from member Tea Estates of the Tea Association of India, there is a drop in crop of around 8% in July 2026 and a similar drop in the current month too, which is estimated to lead to an overall drop of around 8 Mkgs in North India by the end of this month as compared to last year. "It is further estimated to drop in crop in the coming months, particularly in Assam, as the submerged Tea bushes due to the recent flood will take time to recover. The scenario is not encouraging this year for the Tea industry in respect of exports too due to the recent geopolitical crisis. While the Industry touched a record high of 285.53 Mkgs of exports in the year 2025, the industry is lagging behind by around 23 Mkgs or around 18% compared to last year, as per the official figures published by the Tea Board for the January-June period. With the natural circumstances beyond one's control, the Tea industry in both Assam and West Bengal is looking at a grim future in the days to come, with ever-plummeting auction prices and an increase in essential inputs, including wages and outflow on account of higher Bonus in absolute terms; the scenario looks extremely despondent," the statement reads. (ANI)
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