Bagdogra, West Bengal – The tea industry in North Bengal is facing renewed financial pressure after auction prices dropped significantly last year. During the 64th Annual General Meeting of the Terai Branch of the Indian Tea Association (TBITA), held at Bengdubi near Siliguri, industry leaders reported that the average price of tea fell by ₹20 per kilogram in 2025 compared to 2024.
According to TBITA Chairman Debjayoti Mallik, the average auction price at the Siliguri Tea Auction Centre was ₹169 per kg in 2025, down from ₹189 the previous year. He warned that this decline is creating a sustainability crisis for tea estates. While the cost of production—including labor, fuel, and materials—continues to rise, the revenue earned from sales is shrinking. Mallik emphasized that without better price realization, it is becoming increasingly difficult for estate owners to manage their properties effectively.
To address this crisis, experts at the meeting proposed that the industry must focus on boosting demand within India. Currently, the average person in India consumes about 840 grams of tea per year. In contrast, per capita consumption in the United Kingdom is nearly 1.9 kilograms. Planters believe that a targeted promotional campaign to increase local consumption by just 60 to 70 grams per person could help stabilize the market and absorb the excess supply.
