Terai tea industry under strain: TBITA Chairman

Despite a marginal rise in tea production, the Terai tea industry continues to face severe financial and operational stress due to erratic weather, pest infestation, falling auction prices and delayed subsidies, said Debajyoti Mallik, Chairman of the Terai Branch of the Indian Tea Association (TBITA).

Addressing the 64th Annual General Meeting of TBITA held at Bengdubi in Siliguri on January 30, Mallik noted that All-India tea production stood at 1,290 million kilograms as of November 2025, marking an increase of 17.63 million kilograms (1.38 per cent) compared to the same period last year.

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“The Terai region recorded a production of 163.33 million kilograms, marginally higher by 1.83 per cent over 2024. However, severe pest infestation and erratic climatic conditions adversely affected the first and second flush, limiting the overall gains,” Mallik said.

Highlighting market concerns, he pointed out that the average price realised at the Siliguri Tea Auction Centre (Sale 1-52) in 2025 fell sharply to Rs 169 per kg, a drop of Rs 20 per kg compared to 2024. “This steep decline in prices has come at a time when input costs remain high, further squeezing garden finances,” he added.

Although the total volume of tea offered at STAC increased to 65.85 million kg from 59.67 million kg in 2024, Mallik described 2025 as “yet another challenging year for the industry,” citing unpredictable weather, widespread pest attacks, severe tea bush diseases and a highly depressed market scenario both domestically and internationally.

Expressing concern over stagnant demand, Mallik said India’s per capita tea consumption remains low at 840 grams, significantly below that of neighbouring and other major tea-consuming nations. “With exports remaining stagnant for several years, a comprehensive and long-term domestic promotion campaign through a reputed national agency is urgently needed,” he said, adding that even an increase of 60-70 grams per capita consumption could substantially ease many of the industry’s challenges.

Mallik also flagged serious financial stress in several Terai tea gardens due to production shortfalls and delays in the disbursement of approved subsidies under Tea Board schemes. “Pending subsidy claims have severely strained cash flows and hampered essential field and factory development. We urge the Tea Board to allocate special funds to clear these dues at the earliest,” he said.

Referring to recent developments, Mallik informed that the Indian Institute of Plantation Management, Bengaluru, has been engaged by the Tea Board for a third-party evaluation of the Tea Development Promotion Schemes (TDPS). “During an interactive session held on December 4, 2025, at the Tea Board office in Siliguri, we submitted detailed suggestions on schemes that should be included in the forthcoming TDPS. We request the Tea Board to accommodate these proposals in the new framework,” he added.