Jorhat: Assam’s tea industry, a century-old symbol of Indian agriculture, is facing serious challenges. With an influx of cheap foreign imports and falling auction prices, especially small-scale tea growers are in a tough spot.
Recently, the U.S. imposed a steep 50% tariff on Indian tea imports. While only 6.8% of Indian tea heads to the States, that market is crucial. It shapes global tea trends, and the tariffs could erase profit margins for exporters. As Prabhat Bezbaruah, a veteran planter, points out, “A tea packet priced at ₹400 in the U.S. retail could jump to ₹1,800. With these tariffs, those profits disappear.”
Bezbaruah highlights that although the current tariffs may not seem severe, their long-term effects could be harmful. Meanwhile, teas from countries like Nepal, Kenya, and Sri Lanka are pouring into India without proper regulations. This raises concerns, especially since many of these imports lack quality checks. “We don’t know what’s in those teas,” Bezbaruah adds. “This could tarnish our reputation.”
Imported teas are reportedly slipping into the domestic market under the guise of re-export, harming local growers. “This is not just unethical; it’s illegal,” Bezbaruah insists, explaining how these practices flood the market and force local producers to cut prices.
For small tea farmers, the impact is dire. Prices for raw tea leaves have plummeted, making it hard for them to survive. “We’re producing more but earning less,” a grower from Upper Assam lamented. Many now fear their future. Without immediate help, they worry that they won’t be able to continue in the business.
Adding to these troubles, there are talks about bringing back old pesticides that had been banned. Bezbaruah strongly opposes this, warning that using outdated chemicals could lead to rejection in export markets. International buyers are strict about chemical residues, and any violations could endanger India’s status as a reliable tea exporter.
To tackle this crisis, Bezbaruah suggests a unified auction platform for Indian teas. He believes a centralized digital platform could streamline transactions, improve transparency, and help stabilize prices. “Right now, the system is fragmented and hurting everyone,” he says.
This year, Assam’s tea production is expected to exceed 1,400 million kg, which could worsen the oversupply issue. “Production has risen by nearly 10%, but consumption hasn’t kept pace. This imbalance is pushing prices lower,” Bezbaruah explains.
Ultimately, without clear regulations and effective policies, Assam’s iconic tea industry may continue to struggle. Local farmers, once the backbone of this vital sector, face an uncertain future in an increasingly competitive market.
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ASSAM TEA, UNREGULATED IMPORT OF LOW GRADE TEA, INDIAN TEA FACE CHALLENGES, US TARIFF AND INDIAN TEA, US TARIFF A NEW CHALLENGE FOR INDIAS ALREADY STRAINED TEA SECTOR
