Indian Tea Industry Faces Climate and Economic Challenges

The Indian tea industry is grappling with multiple challenges, including climate change, rising costs, and market pressures, threatening the livelihoods of millions and the sector’s global standing.

Climate change has significantly impacted tea production, with erratic rainfall and rising temperatures affecting yields in major tea-growing regions like Assam and Darjeeling. Unpredictable weather patterns have led to reduced output and lower quality, making it difficult for producers to meet demand. Additionally, increasing production costs, including labour and fertilisers, have strained profit margins. The industry employs over 2 million people, and these challenges put jobs at risk, particularly for small-scale farmers.

Global competition is another hurdle, as countries like Kenya and Sri Lanka offer tea at lower prices. Indian tea exports have declined in recent years, with buyers turning to more cost-competitive markets. Domestic consumption remains strong, but oversupply in some regions has led to price drops, further impacting producers’ incomes. The Indian Tea Association is pushing for government support, including subsidies and better trade policies, to address these issues.

Efforts are underway to improve sustainability, with some plantations adopting organic farming and water conservation practices. However, transitioning to these methods is costly and time-consuming, posing challenges for smaller estates. The industry is also exploring new markets and value-added products, such as packaged teas and tea-based beverages, to boost revenue.

In conclusion, the Indian tea industry faces significant challenges from climate change, rising costs, and global competition. Sustainable practices and government support are critical to ensuring the sector’s survival and protecting the livelihoods of millions dependent on it.

Source: Outlook Business