Guwahati, 26 August: The Indian tea sector is facing a significant decline in prices due to a rise in tea imports — especially from Kenya — which is disrupting the market and causing concern among Assam’s tea growers. Tea imports from Kenya increased by 45% in the first half of 2025, totaling 6.69 million kg from January to June, compared to 4.61 million kg during the same timeframe last year.
According to the Tea Board of Kenya, the African country exported 13.7 million kg of tea to India in 2024 — an astonishing 288% increase from the previous year. This surge, along with a 20% rise in Assam’s own production, has inundated the market, leading to a sharp decline in prices. “At the Guwahati auctions, average prices from April to August are approximately ₹20 lower than last year,” stated Dinesh Bihani, secretary of the Guwahati Tea Auction Buyers Association. While higher quality teas continue to command reasonable prices, lower-grade teas are experiencing a drop in demand. He also mentioned that ex-state sales have been lackluster, with additional price reductions noted. Last year, unpredictable weather resulted in crop losses, driving average prices up to ₹253 per kg — the highest since the pandemic. In contrast, this year’s average auction price is recorded at ₹225.5. Concerns Over Credibility and Tax Evasion
Tea growers are expressing serious worries about the long-term harm caused by inexpensive, duty-free imports. Sandeep Singhania, president of the Tea Association of India, cautioned that some exporters are mixing low-cost imported teas with Indian varieties and selling them as Indian-origin — a practice that misrepresents the product and threatens the global reputation of Indian tea.
“Many of these imports are entering the domestic market illegally, avoiding the 100% import duty and undermining legitimate producers with cheaper, indistinguishable blends,” Singhania remarked.
