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Assam’s small tea growers are in turmoil. Prices of green tea leaves have nosedived from ₹40 to ₹20 per kg, triggering widespread unrest. While some attribute this to declining tea consumption due to rising milk prices—a view echoed by Dinesh Bihani of the Guwahati Tea Auction Centre—growers and industry insiders are pointing to a deeper crisis: a surge in cheap tea imports.
A new press statement from the Tea Association of India (TAI) reveals a flood of imported tea is distorting domestic prices. Tea imports into India reached 23.65 million kg in 2023. But what’s more alarming is that Kenyan tea exports to India jumped 226% in 2024, from 5.26 million kg to 17.13 million kg. The first three months of 2025 already show another 117% increase.
This influx has neutralized efforts by the Tea Board and producers to stabilize prices. Even after production dropped by 110 million kg in 2024 due to weather and official curbs, the market was overwhelmed by imports. As a result, auction prices fell by ₹60 per kg, and growers now receive unsustainable rates.
The root of the issue lies in the misuse of the Advance Authorization Scheme and SEZ provisions, which allow duty-free imports for re-export. The TAI alleges that much of this imported tea is illegally entering the domestic market, bypassing the 100% import duty, and being blended with Indian tea—damaging both prices and India’s tea reputation.
TAI has urged the Centre to ban duty-free imports under these schemes. Instead, they propose allowing imports with full duty payment and refunding the duty only after verifiable exports. They’ve also called for a traceable and auditable system like Sri Lanka’s to prevent market distortion and uphold quality standards.
For small growers—who form the backbone of Assam’s tea industry—this is an existential crisis. With no support price or subsidy cushion, many are now selling at a loss. As elections approach, the crisis may soon become a political flashpoint.
Growers say the real problem isn’t milk—it’s the unchecked import of cheap tea. And unless swift action is taken, India’s iconic tea industry could face lasting damage.