Tea Prices Surge Amid Significant Drop In Production Driven By Climate Change

Guwahati: Assam, one of the largest tea producers in the world, is currently facing a steep decline in production due to climate change. The state, which produced 90.26 during September 2023 reduced up to 89.98 per cent in September 2024.

Various reports indicate that the Guwahati Tea Auction Center (GTAC) achieved record tea prices from April to October 2024. During this period GTAC sold 111.03 million kgs of tea up from 102.92 million kgs last year, an impressive growth of approximately 7.88 per cent. The average price per kg rose to Rs 252.83, compared to Rs 200.08 last year, indicating that sellers through GTAC received an additional Rs 52.75 per kg on average. Additionally, the total GTAC turnover also increased from 2059 crores to 2807 crores. 

According to Tea Board's data, North India's crop production has declined by 63.01 million kgs up to September, with Assam alone contributing a loss of 26.18 million kgs. To dive deep into the details of the tea business in Assam, Business North East (BNE) spoke to Secretary of the Guwahati Tea Auction Buyers Association Dinesh Bihani, who shared insights about the decline of tea production particularly in the northeast. 

Speaking to BNE, Dinesh Bihani said, “Tea production has seen a staggering decline of 63 million kilograms this year, attributed primarily to unprecedented climate changes.” Moreover, talking about the tremendous downfall of tea production, which is 63.01 million kg till September 2024, 

"The first half of the season, from May to September, saw severe climatic disruptions across all districts in Assam. Over the past five years, we haven’t experienced such extreme changes," Dinesh Bihani stated emphasizing that tea bushes require specific weather conditions to thrive. This year, however, soaring temperatures between 34°C and 44°C severely damaged tea crops, with many bushes scorched. Additionally, erratic weather—oscillating between intense sunlight and heavy rainfall—further impacted the quality and quantity of tea.

The resulting shortfall has also pushed prices higher, increasing Tea prices by Rs.52 per kg at the Guwahati Tea Auction Center till October 2025. Despite this, tea exports up to August have risen by 31 million kilograms, supported by strong demand from countries like Russia and the UK. "Our quality tea is being offered at reasonable prices, which has helped boost exports," Dinesh Bihani added.

He also highlighted new initiatives launched to increase tea production in the Northeast. “We have to start taking some scientific methods and proper cultivation practices to recover the loss of tea production. The growing influence of small tea growers, who have entered the market over the last decade but often lack the knowledge and resources to optimise production,” Dinesh Bihani said.

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According to him, many small growers don’t provide adequate shade for the bushes, which has led to significant damage. Collaboration with the Tea Board and associations is essential to guide them in improving both quality and quantity.

Speaking of the challenges faced, the GTABA Secretary stated, “The production drop poses challenges for domestic consumption, especially for high-quality tea. If October’s crop performs well and November brings favourable weather, we can recover some losses and address the quality gap."

"This year’s crisis serves as a wake-up call for the tea industry to adapt to changing climatic conditions and implement sustainable farming practices to secure its future.” he further said during the BNE interview.