ITA flags financial stress in Indian tea despite record 280M kg exports in 2025

Indian Tea Association warns of margin squeeze as auction prices fall 7.13% to Rs 186.92/kg, Q1 2026 production drops 11.22%, Nepal imports surge to 11.70M kg, and Darjeeling output slides to 5.3M kg. ITA seeks minimum price mechanism and RoDTEP revisions even as exports hit Rs 8,488 crore.

— Source publishedThu, 21 May, 2026, 06:49 IST·First seen Thu, 21 May, 2026, 06:53 IST·Source The Hindu BusinessLine

What happened

Indian Tea Association · ITA flags financial stress in India's tea sector despite record 280 million kg exports in 2025, citing falling auction prices, climate

Key facts

  • 280.40 million kg exports 2025
  • Rs 8,488.43 crore export value
  • auction price down 7.13% to Rs 186.92/kg
  • production -11.22% in Q1 2026
  • Nepal imports 11.70 million kg
  • Darjeeling output 5.3 million kg

Why this matters

Distressed Darjeeling estates at 5.3M kg output and broader financial stress signal a buyer's window for consolidation plays, especially specialty gardens with export-grade RoDTEP exposure.

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