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Assam Tea Associations Raise Alarm Over Rising Imports, Call for Constitution of Task Force as Prices Plunge

Assam tea associations urge action as imports surge and prices tumble

Photo by Aravind P.S.
Assam tea plantations face challenges as rising imports impact domestic prices Photo by Aravind P.S.
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Summary
Summary of this article
  1. Assam tea groups alarmed over rising imports threatening domestic tea industry.

  2. Import surge from Kenya and Nepal doubles volumes, affecting market stability.

  3. Raw tea prices drop sharply, task force demanded to protect growers.

Major tea associations in Assam have expressed concern over increasing imports, particularly from African countries, and called for the constitution of a task force to protect the industry, according to a release published on August 28.

 A delegation of Assam Bought Leaf Tea Manufacturers Association (ABLTMA), Bharatiya Cha Parishad (BCP) and North Eastern Tea Association (NETA) called on Tea Board India's Deputy Chairperson Arunita Phukan Yadav and submitted a memorandum on issues related to imports, routing of 100% dust grade tea using auctions and compliance of norms of the Food Safety and Standard Authority of India (FSSAI) on the use of pesticides, it said.

 ''We are concerned about teas from African countries entering the Indian market without paying duty or through other means, which will kill the Indian tea industry," the tea associations claimed.

As per the official figures of the Tea Board of Kenya, the exports from the African country to India increased by 45% during the January-June period this year, as compared to the same period last year, they said.

The imports in 2024-25 have doubled compared to 2023-24, the tea associations said.

In 2023-24, it was 25.21 million kg, whereas in 2024-25, it reached 50.14 million kg.

"Surprisingly, this data does not match that of the Directorate General of Commercial Intelligence and Statistics (DGCI&S), and this non-matching has created more suspicion in our minds," one of the members of the delegation told PTI.

The majority of the tea was imported from Kenya (17 million kg) and Nepal (15 million kg) in 2024-25, they claimed.

Moreover, another area of concern is that the Tea Board "does not have a proper trace of re-exports and a software application can easily be put in place, which will monitor imports and re-exports", they added.

''We appeal that a task force be formed to investigate the whole import matter in a holistic manner. The task force should also recommend measures to protect the Indian tea industry," another member of the delegation said.

The Tea Board's regulation of routing 100% dust-grade tea through public auctions has also created financial distress for the tea industry, they claimed.

Decline in Raw Tea Leaf Prices

In addition to the concerns raised by Assam’s tea associations, the surge in tea imports from African countries, particularly Kenya and Nepal, has caused a significant decline in raw tea leaf prices. In August 2025, prices of raw tea leaves dropped nearly 50% year-on-year, reaching ₹14 per kilogram. This sharp decline is attributed to the influx of lower-priced teas from Kenya and Nepal, which has intensified competition in the domestic market. Small tea growers across Assam, West Bengal, Himachal Pradesh and South India, cultivating 1-5 acres each, are already bearing the brunt of the crash.

Domestic price pressures are compounded by international trade uncertainties.

The tea industry in India through its leading industry body Indian Tea Association (ITA) expressed concerns over the imposition of higher tariffs by US President Donald Trump on September 1, stating that the hike in levy is likely to have an impact on exports of the beverage to that country.

(With inputs from PTI.)

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