·The Hindu·15 marks·250–350 wordsPolityEconomyHistory

Discuss the structural challenges facing India's tea industry despite record production and export figures. Suggest measures for sustainable revival.

In this answer
  1. Structural challenges
  2. Measures for sustainable revival

India's tea sector — administered by the Tea Board under the Ministry of Commerce & Industry — touched an all-time high production of 1,382.74 million kg and record exports of 282.11 million kg worth ₹8,718.83 crore in FY 2025-26 [1]. Yet these headline records mask deep structural weaknesses in productivity, labour welfare, and market competitiveness.

Structural challenges

  • Ageing plantations: over 70% of tea bushes are more than 50 years old, depressing yield per hectare and quality; replantation is capital-intensive and slow [2].
  • Skewed geographical concentration: Assam (~50%) and West Bengal (~30%) dominate output, so a single monsoon failure or law-and-order disruption transmits shock to the entire national supply [1].
  • Labour and welfare stress: a workforce of about 1.16 million direct workers, a majority of them women, faces wage, housing, and social-security gaps under the plantation regime; labour costs form the bulk of production cost [2].
  • Smallholder squeeze: small tea growers now supply a rising share of green leaf but lack bargaining power, price realisation, and quality infrastructure [3].
  • Value-addition deficit: India remains largely a bulk-tea exporter and ranks only third in global exports despite being the second-largest producer, indicating weak branding and low per-kg realisation [1].
  • Climate vulnerability: erratic rainfall and rising temperatures in Assam threaten flush timing and yields [1].

Measures for sustainable revival

  • Scale up replantation and rejuvenation under the Tea Development & Promotion Scheme, with clone-based, climate-resilient planting material [1].
  • Strengthen small tea grower FPOs and transparent auction/price-sharing formulas to improve realisation [3].
  • Push value addition and branding — packet, orthodox, organic and speciality teas — leveraging GI protection, pioneered by Darjeeling Tea as India's first GI product [2].
  • Ensure statutory welfare compliance, mechanisation with reskilling, and diversification into plantation tourism.

Records reflect volume, not resilience. Anchoring revival in productivity renewal, smallholder empowerment, and worker dignity would align the industry with SDG-8 on decent work, converting a colonial-era plantation legacy into a globally competitive, farmer-centric agro-industry.

Sources

  1. 1Department of Commerce Highlights 12 Years of Transformative Growth; Tea Sector Records Historic Export Performance, PIB (2026)FY2025-26 record production and exports, state-wise shares, export rank, Tea Development & Promotion Scheme, climate stress in Assam
  2. 2Indian Tea Sector: Production, Trade, Welfare and Employment, PIB Press Noteageing bushes, workforce size and women's share, Darjeeling GI protection
  3. 3Small tea growers will have the biggest role to play in shaping the future of tea sector in India: Shri Piyush Goyal, PIB (2022)rising centrality and price-realisation concerns of small tea growers
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