Indian Tea Sector Overcomes Challenges: A Resilient Year Amidst Climate and Economic Pressures

The Indian tea industry saw increased output and exports despite weather challenges, pest attacks, stagnant prices, and import controversies in 2025. Small growers drove growth, while orthodox teas gained market share. Exporters achieved success, but new EU pesticide laws pose a future challenge, requiring government promotional support.

The Indian tea sector managed to achieve increased production and higher exports this year, overcoming hurdles such as unpredictable weather, pest invasions, stagnant prices, and import disputes, as several industry stakeholders report. The Tea Association of India notes this year's output improved compared to a 100 million kg decline seen in 2024.

During 2025, production saw a boost by 40-45 million kgs, largely credited to the contributions from small growers, despite North India reporting a slight shortfall. The influx from smaller producers pushed down CTC tea prices mid-year, but a recent market recovery has eased price pressures for larger producers.

Exporters have noted an optimistic outlook with significant efforts to expand in markets like Iran and China, despite potential challenges with new EU pesticide regulations. With climate change implications looming and price pressures likely from labor cost hikes due to forthcoming elections, the industry continues to adapt with climate-smart practices.

(With inputs from agencies.)