Overview
- Auction averages at the three main northern centres have fallen sharply over the past five to six weeks, dropping about 17% in Calcutta, 15% in Guwahati and 8% in Siliguri, the Tea Association of India said.
- The association told reporters on Aug. 28 that member estates reported roughly an 8% fall in crop output in July, expected to repeat in August and produce an estimated 8 million kg shortfall in north India by the end of August.
- Official Tea Board figures show north India’s production was marginally higher through June 2026, but exports fell by about 23 million kg in January–June 2026 versus the same period in 2025, which weakens external demand.
- Planters attribute the price collapse to flash floods in Assam, extreme heat and severe pest and disease outbreaks that damaged crops, not to oversupply, and say rising wages and higher bonus payments are squeezing cash flows.
- If current price and crop trends persist, estates face immediate liquidity stress that could force operational cuts and job losses in Assam and West Bengal and may prompt policy or market intervention.