India's tea production has seen a steady surge over the past one-and-a-half decades, but auction prices have not kept pace, tea industry stakeholders said on Saturday.

“Over the last 15 years, India’s tea production has increased by 35 per cent, from 966 million kilos in 2010 to 1,304 million kilos in 2024. However, there has been a decline in prices in even in 2025 to the tune of 6 per cent, which is posing a question on the sustainability of the tea industry,” Sandeep Singhania, the Tea Association of India (Tai) president said.

Singhania was speaking at the Tai's 50th biennial general meeting at the Williamson Magor Hall of the BCCI in Calcutta.

According to him, in 2025, the all-India average tea price declined by ₹12.31 per kg — a dip of around 6 per cent from ₹199.30 per kg in 2024 to ₹186.99 per kg in 2025.

In north India, the dip has been sharper, with the price falling by ₹16.73 per kg, or 8 per cent, to ₹204.84 per kg in 2025. In 2024, the average price in north India was ₹221.57 per kg.

Singhania said that in the past 20 years, the small tea sector saw major growth. In north Bengal, the small tea sector contributed 55 per cent to the total tea production in 2024. It was merely 23 per cent two decades ago.

“In 2025, the tea production is likely to be around 1,350 million kilos, marginally higher than 2024 (when it was 1,309 million kilos). Even though India produces around 19 per cent of the world’s total (tea), its share in global exports is only 13 per cent. We need to put in impetus to increase exports...,” he said.

He pointed out that in India, the per capita consumption of tea is around 840 grams, while in the UK, it is 1.61 kilos. “Some of our neighbouring countries also have higher per capita consumption. This is another area we need to work on, as an increase of even 100 grams in per capita consumption would increase domestic consumption by another 131 million kilos. It can help maintain the demand-supply equilibrium,” he said.

Of India’s total tea production, around 90 per cent comprises CTC tea, he said, urging for diversification.