India’s raw tea prices plunge 50% as imports from Kenya and Nepal surge 

INDIA – Raw tea leaf prices in India have tumbled nearly 50% year-on-year in August, falling to US$0.16 per kilogram.  

Industry leaders attribute the decline to increased imports of cheaper teas from Kenya and Nepal, coupled with uncertainties surrounding U.S. trade policies under former President Donald Trump’s tariffs. 

The price crash has raised concerns for India’s small tea growers, who are bearing the brunt of the downturn. According to the Tea Board of India, smallholder farmers—those cultivating 1-5 acre plots—produced 54% of the nation’s tea output in 2024.  

This group, estimated at 24 million growers across Assam, West Bengal, Himachal Pradesh, and southern states, is now grappling with steep revenue losses. 

“Black tea imports have surged as Kenyan production increased and teas were shipped to India at lower prices, pushing down domestic rates,” explained Bijoy Gopal Chakraborty, president of the Confederation of Indian Small Tea Growers Association (CISTA). 

Government data shows tea imports doubled to 50.14 million kilograms in FY25 from 25.21 million kilograms in FY24. Meanwhile, India exported around 17 million kilograms of tea to the United States, accounting for 7% of its total exports of 255 million kilograms—the highest in a decade. However, analysts warn that trade tensions and tariffs could weaken demand further. 

The downward spiral in raw tea prices has persisted since April-May, when prices stood at Rs 22 per kilogram. At auctions, the average price of common CTC black leaf tea dropped to US$2.70 per kilogram from US$3.06 per kilogram between April and mid-August, according to the Calcutta Tea Traders Association.  

Dust variety tea also slipped to US$3.08 per kilogram from Rs 277 during the same period. 

India’s tea production increased 4% in the first half of 2025, reaching 359.32 million kilograms compared to the previous year. However, industry leaders suggest that oversupply, coupled with growing imports, has further intensified price pressures. 

“At the retail end, we do not see an immediate recovery in prices,” noted Viren Shah, managing director of Gujarat-based Jivraj Tea.  

Executives from Hindustan Unilever (HUL) and Tata Consumer Products (TCPL) added that falling raw material prices are likely to continue weighing on retail tea prices, which have already declined 10-15% year-on-year during July-August. 

“Tea prices remain 13-15% lower than last year, and this weak trend may persist for the rest of the year,” confirmed TCPL managing director Sunil D’Souza. 

Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates