For millions across India and around the world, a day without a cup of chai is nearly unthinkable. The nation’s love affair with tea spans centuries and regions, intertwining culture, economy, and daily life.
Yet, India’s tea industry, a vital part of its agricultural backbone and export strength, is facing a sharp and alarming decline. Data from the Tea Board reveals a 9 percent drop in production in June 2025 compared to the previous year. With output falling from 146.72 million kg in June 2024 to just 133.5 million kg this year, tea gardens across both North and South India are grappling with the devastating effects of changing climate patterns and pest infestations.
The production decline affects all major tea-growing regions. In the northeast, comprising Assam and West Bengal, tea output fell from 121.52 million kg to 112.51 million kg. The situation is more severe in South India—including Kerala, Tamil Nadu, and Karnataka—where production slipped from 25.20 million kg to 20.99 million kg. Large estates and small-scale farmers alike have suffered losses. Big planters produced 55.21 million kg in June 2025, down from 68.38 million kg the previous year, while small growers experienced an even more significant decline, falling from 78.34 million kg to 68.28 million kg in the same period.
These declines come against the backdrop of unusual and erratic weather. Tea plantations have been battered by unpredictable monsoon rains, with some areas facing deficits that led to water stress, while others have experienced excessive rainfall, damaging tea leaves and making harvests difficult. Increasing temperatures have created a conducive environment for pests and diseases that further reduce yield and add to growers’ challenges. The Indian Tea Association, which represents tea producers, cites these adverse weather conditions and pest infestation as primary drivers behind the drop in output.
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This environmental volatility severely disrupts traditional tea cultivation cycles. Tea bushes need stable, moderate rainfall and relatively steady temperatures to maintain healthy growth. However, frequent weather shocks and prolonged droughts upset these requirements, delaying plucking seasons and lowering leaf quality. Pest outbreaks thrive in the altered climate, exacerbating crop damage and requiring additional pest management efforts that raise costs for farmers without guaranteeing returns.
The impact on smallholder tea growers is particularly worrying. These farmers, often operating on marginal lands with limited access to technology and credit, are hit hardest by the production shortfall. Lower harvests translate into reduced income, threatening their livelihoods. With tea being a key source of employment in rural areas, especially in Assam and the Nilgiri Hills, the social and economic ripple effects are substantial.
India’s tea industry also faces pressure on the price front. Despite the supply contraction, auction prices for popular varieties like CTC (Crush, Tear, Curl) tea have declined by 7 to 9.5 percent in major producing regions such as Assam and West Bengal. This paradoxical price drop stems partly from rising imports flooding the market. Recent data shows tea imports surged by 82 percent in 2024 compared to 2023, mainly from Nepal and Kenya, intensifying competition. These factors combined are challenging the financial sustainability of the Indian tea sector at both large estates and smaller produce levels.
The broader implications for India’s tea exports and domestic consumption are worrying. As tea remains one of India’s iconic exports, any decline in production threatens not only revenue generation but also the country’s market share amid fierce global competition. For domestic consumers, often fiercely loyal to their seamless chai ritual, shortages or quality deterioration could impact daily life and cultural practices around tea.
Reversing this downward trend demands aggressive interventions on multiple fronts. Farmers and industry experts emphasize the need for enhanced climate adaptation strategies tailored to varying regional challenges. These include developing drought-resistant tea varieties, investing in water management infrastructure, and deploying integrated pest management systems that reduce pesticide dependency. Research and innovation, supported strongly by government and corporate stakeholders, must accelerate to equip growers with tools and knowledge to combat unpredictable climate threats.
Policy support from the government is equally crucial. Incentives that finance climate-resilient agricultural practices, modernization of tea gardens, and improved marketing channels could mitigate some of the financial risks currently borne by producers. Additionally, efforts to regulate imports and stabilize domestic tea prices can help maintain the viability of India’s tea industry.
In this pivotal moment, the future of India’s beloved cuppa chai hangs in balance, presenting a test of resilience for growers, regulators, and consumers alike. The tea plantations of Assam’s lush valleys and Kerala’s rolling hills have long been treasured sources of livelihood and culture. Protecting these landscapes from climate-induced degradation is not just about volume—it speaks to preserving a heritage and way of life that millions cherish daily.
With concerted action, innovation, and public awareness, the nation can safeguard its tea industry from this unprecedented decline. India’s chai culture, steeped rich in history and taste, deserves no less.
