Photo Courtesy: India Today Group
Guwahati: North Indian tea growers are facing a financial crisis. Prices at major auction houses dropped by as much as 17 percent between July and mid-August, putting the sustainability of the sector at risk. Tea Association of India (TAI) president Shailja Mehta blamed a mix of flash floods, extreme heat, and heavy pest damage for the production slump. The industry is bleeding.
Data shows that prices at the Calcutta Tea Traders Association plunged from Rs 291.27 to Rs 238.77 per kilogram between Sale No. 26 and Sale No. 34. The Guwahati Tea Auction Centre saw a 15 percent drop, while the Siliguri Tea Auction Centre prices fell 8 percent. This price collapse comes despite a modest 5 percent increase in supply earlier in the year.
Mehta said, "The auction price figures of 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."
Production hit a wall in July with an 8 percent decline reported across TAI member estates. Experts expect a similar drop for August. The region anticipates a total shortfall of 8 million kilograms by the end of the month as tea bushes struggle to recover from recent flooding. Meanwhile, export numbers are down 18 percent compared to the same period last year, worsened by ongoing geopolitical instability. Planters also face a crushing reality: rising input costs, higher wages, and steep bonus payouts are eating away at the thin margins left behind.
Updated at 28th August 2026 at 10:06pm
The price slide is fueling a deeper liquidity crisis for estates across Assam and West Bengal. Growers are caught in a financial pincer movement: they face surging costs for essentials, higher wage bills, and heavier bonus outflows while their primary income from auction sales continues to shrink.
Specific market data confirms the extent of the slump. At the Guwahati Tea Auction Centre, the average CTC price slipped from Rs 264.89 in Sale 26 to Rs 221.57 in Sale 34. Meanwhile, the Siliguri Tea Auction Centre saw prices drop from Rs 201.80 in Sale 27 to Rs 182.30 in Sale 34. Total Indian tea exports for the first half of 2026 reached 23 million kg less than the previous year, a sharp drop that followed a record-breaking export volume of 285.53 million kg in 2025.
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