Kolkata, May 20 (PTI) The Indian Tea Association (ITA) on Wednesday flagged mounting financial stress in the sector despite India's exports touching a record 280.40 million kg in 2025, and called for urgent government intervention on pricing, climate support and export competitiveness.

In a statement ahead of International Tea Day on May 21, the ITA said auction price realisations have grown at a compounded annual rate of only 3.81 per cent over the past decade, while input costs such as energy, fertilisers and other farm inputs have risen sharply, putting pressure on estate viability.

India is the world's second-largest tea producer and third-largest exporter, contributing approximately 19 per cent of global output. The country produced 1,369.98 million kg in 2025, with exports valued at Rs 8,488.43 crore.

However, the ITA noted that all-India auction prices declined 7.13 per cent in 2025 to Rs 186.92 per kg from Rs 201.28 per kg in 2024, with North India prices falling a sharper 9.87 per cent.

The association also flagged a 97 per cent rainfall deficit in Assam during January-February 2026, which hit bush health and output.

All-India tea production in January-March 2026 fell to 98.01 million kg from 110.4 million kg in the corresponding period of 2025, a decline of 11.22 per cent.

The ITA raised concern over rising imports, with Nepal tea imports at 11.70 million kg in 2025, exceeding Darjeeling's total output of approximately 5.3 million kg.

The Darjeeling sector, it said, has seen production plunge from 11.58 million kg in 2008 to 5.3 million kg in 2025, with prices recording a negative CAGR of around 2 per cent between 2018 and 2024.

Among its key demands, the ITA sought a minimum sustainable price mechanism linked to cost of production, upward revision of RoDTEP rates, restoration of orthodox tea production incentives, and a dedicated relief package for Darjeeling estates, including interest subvention on working capital. PTI BSM MNB

Tea sector financial stress deepens as rising costs, weak prices and climate pressure prompt calls for policy support. Tea sector faces mounting financial stress despite record exports, as slow auction price growth, rising input costs, adverse weather, declining production and import pressure continue to affect estate viability. The association called for a minimum sustainable price mechanism linked to production cost, higher export support, restoration of orthodox tea incentives and relief for Darjeeling estates, including interest subvention on working capital.