Assam's Tea Industry Faces Crisis Amid Climate Change-Induced Production Losses

Tea production in Assam, one of the world’s largest tea-growing regions, has plummeted by 100 million kilograms in 2024 due to extreme weather events linked to climate change.

This significant decline is expected to hit both tea estate workers and small tea growers, intensifying financial strain on a sector that supports millions in the state.

Experts are urging the Assam government to act swiftly to protect farmers' livelihoods and introduce sustainable measures to mitigate the ongoing effects of climate change.

The Tea Board of India reported that total tea production across the country from January to July has decreased by over 13% compared to the same period last year, bringing total output to 552.83 million kilograms.

This shortfall has led to an increase in tea prices at auctions across Kolkata, Guwahati, and Siliguri, with the average price per kilogram rising to ₹260.90 in the last week of August—an impressive 36% year-on-year surge from ₹192.05 per kilogram.

However, while the price increase provides some relief, industry experts like Prabir Bhattacharjee, Secretary General of the Tea Association of India, note that it doesn’t fully compensate for the production losses.

“Till the end of July, we are down by 85 million kilograms, and though prices have gone up by 17 to 18%, the current buoyancy in pricing may not be enough to offset the decrease in production,” Bhattacharjee stated.

The critical production window, from August to October, typically accounts for 45 to 50% of the annual output, leaving the industry hopeful but uncertain about recovery prospects.

Adding to these concerns, Member of Parliament Gaurav Gogoi voiced apprehensions about the broader socio-economic impacts of climate change on Assam’s tea sector.

Gogoi emphasized that both growers and laborers are vulnerable to these changes and called for the state government to prioritize the tea industry’s adaptation to climate-related challenges.

Despite the domestic struggles, Indian tea has remained popular on the global market. Exports increased by 37% in the first four months of 2024, reflecting strong international demand.

Nonetheless, the combined challenges of climate-induced disruptions and fluctuating production figures raise questions about the long-term resilience of Assam’s tea industry.

Industry leaders and farmers alike await government intervention, calling for policies that address both the immediate production losses and the long-term need for sustainable agricultural practices.

Also Read: Inadequate Wages, Ineffective Welfare Schemes of Assam Tea Workers: CAG Report