Kolkata, Jul 30 (PTI) Indian Tea Association (ITA), a leading body of planters, on Wednesday said that the industry is grappling with multiple challenges and stands at a critical crossroad in 2025.

ITA said in a statement that the industry is facing significant headwinds in production shortfall, decline in price realisation and influx of imports, which is having a bearing on the growth trajectory.

Production of the crop witnessed a significant production shortfall in 2024, with country-wide levels dropping by 109 million kilogrammes from 2023. This shortfall in production was due to unfavourable weather conditions and pest attacks in the gardens, ITA said.

According to the association, the poor production levels of 2025 is a big concern for the big growers in West Bengal and Assam. The Darjeeling tea industry also remains a major cause for concern, with production levels lagging 10.34 per cent behind 2024 levels.

ITA said an average rise of daily temperature of two degrees centigrade and reduced rainfall in 2025 had led to dry conditions. This has put pressure on growth in the form of production decline in the two key growing states.

The association said that the July crop is also expected to be weak, with a projected decline of 15 per cent to 20 per cent compared to 2024.

Against the backdrop of production shortfall, there has also been a downward trend in tea auction prices from April to late July, amplifying concerns among the stakeholders.

Specifically, auction prices for CTC and dust tea had declined by almost seven per cent in Assam and 9.5 per cent in Dooars/Terai in West Bengal, ITA said.

The price drops, particularly for the CTC variety, are a concern for financial sustainability for the industry, the association said.

A significant influx of tea imports in 2024 and early 2025 had also contributed to depressing prices. Total imports in 2024 surged 82 per cent to 44.53 million kilogrammes from 24.53 million kilogrammes in 2023, with Nepal and Kenya accounting for 74 per cent of the total, the statement said.

Tea exports during January to April in 2025 totalled 85.77 million kilogrammes, marginally down by 0.18 million kilogrammes compared to the same period in 2024. PTI dc RG

Production shortfall and import surge threaten tea industry sustainability, depressing auction prices and challenging growers' financial viability. The tea industry is facing significant production shortfalls due to adverse weather and pest attacks, with key regions seeing pronounced declines; weak crop prospects and falling auction prices for CTC and dust varieties have reduced price realisation. A substantial surge in imports concentrated from a few origins has further depressed domestic prices, while early year export volumes were marginally lower, collectively heightening operational and financial risks for growers.