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Tea industry flags price drop, auction rate per kilo dips by Rs 20 in 2025 from 2024

“The average auction prices have dropped in 2025, as compared to the prices of 2024. At the tea auction centre in Siliguri, the average price was ₹169 per kilo, which is ₹20 lower than ₹189, which was the average per-kilo price of 2024,” said Debjayoti Mallik, the chairman of the Terai Branch of Indian Tea Association (TBITA)

Indian Tea Association representatives the 64th annual general meeting of the Terai branch of the association at Bengdubi on the outskirts of Siliguri on Friday

Avijit Sinha
Published 01.02.26, 07:48 AM

Stakeholders of the tea industry have flagged a dip in auction prices of tea in 2025 while underscoring the need for financial sustenance of tea estates in north Bengal.

“The average auction prices have dropped in 2025, as compared to the prices of 2024. At the tea auction centre in Siliguri, the average price was 169 per kilo, which is 20 lower than 189, which was the average per-kilo price of 2024,” said Debjayoti Mallik, the chairman of the Terai Branch of Indian Tea Association (TBITA).

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He was speaking at the 64th annual general meeting of the branch held at Bengdubi on the outskirts of Siliguri on Friday.

“For the tea estates to operate sustainably, price realisation must keep pace with the rising production costs. Without adequate returns, meaningful management of properties becomes impossible. I would urge the industry leaders to explore practical avenues so that the prices improve,” he added.

Atul Rastogi, the additional vice-chairman of the ITA and Nayantara Palchoudhuri, a national committee member and past chairperson of the ITA, who were present at the meeting, also underlined the falling tea prices.

“The industry is confronting various challenges, ranging from climatic issues to a drop in prices. The exports have marginally increased in 2025, and we will have to work together to ensure the exports, as well as the domestic consumption, go up,”
said Rastogi.

In India, the annual per capita consumption of tea is only around 840 grams. In comparision, in the UK, a citizen consumes around 1.82 kilos to 1.94 kilos per year.

“A comprehensive, long-term promotional campaign is essential to increase it. If the per capita consumption can be increased even by 60 to 70 grams in the country, many of these challenges can be mitigated,” pointed out a senior planter.

At the meeting, the planters also stated that the social welfare schemes introduced by the state government in the tea belt, ranging from school buses to ambulances to crèches to health centres, have helped the industry.

“Also, the launch of drinking water projects in (certain) tea estates has been of immense help for the tea population. We hope the state government will extend all such schemes across all tea gardens of north Bengal,” said a tea planter.

Tea Industry Stakeholders North Bengal
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