Bumper Crop Turns Bitter for Assam’s Tea Growers

Tea growers across Assam are staring at a deepening crisis as July’s production figures reveal a massive oversupply of green leaf in the market.

According to the Tea Research Association’s latest crop and weather bulletin, tea output in Upper Assam shot up by nearly 40% in July 2025 compared to the same month last year, while cumulative production till July is already 20% higher than last season.

South Bank estates have also reported a surge of over 25% in July alone, though their cumulative crop remains slightly behind last year. The North Bank and Cachar belts recorded gains of 17.5% and 10.4% respectively in July. Even traditionally rain-fed areas like Dooars and Terai showed double-digit crop growth, despite rainfall deficits.

This surge in production has flooded the market with green leaf, sending shockwaves among small tea growers (STGs), who depend almost entirely on open market prices. Industry insiders warn that prices of raw green leaf, which hovered around ₹18–22 per kg last year in peak season, have already started dipping below ₹12–14 per kg in many pockets this July — in some cases, even lower than the cost of production.

While rainfall across most tea areas was lower than last year, slightly higher maximum temperatures and improved shoot growth in the latter half of the month fueled the crop surge. But for growers, the bounty has turned bitter. “Excessive crop without matching demand always depresses leaf prices. Small growers are the worst hit as bought-leaf factories dictate terms,” a senior TRA official noted.

Pest infestations — from Helopeltis, greenfly, thrips, and red spider mite to fungal attacks like Fusarium dieback — were also widely reported, adding further strain on growers who now face higher input costs with diminishing returns.

The industry fears that if prices continue to stay depressed through August and September — traditionally high cropping months — Assam’s 1.2 lakh small tea growers could face one of their harshest financial squeezes in recent years. Calls are already growing for state intervention, either in the form of minimum support pricing (MSP) for green leaf or direct subsidies to STGs.

With production racing ahead and demand lagging, the fear is clear: a bumper crop may soon turn into a bust for Assam’s tea economy.

Here's the report on crop and weather data for July 2025

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