Tea industry facing challenges amidst inflation and slow growth, says Tea Traders Association chief

The Indian tea industry is facing several challenges, including sluggish domestic consumption, high food inflation, and a slow recovery in exports post-pandemic. Sanjay Shah, Chairman of the Federation of All India Tea Traders Association (FAITTA), highlighted these issues during the association's 10th annual meeting in Guwahati.

Shah noted a shift from loose tea to packet tea and emphasized that rising food prices are hurting consumer demand. “High inflation reduces purchasing power, causing consumers to opt for cheaper alternatives,” Shah said.

He also expressed concerns about the market's ability to absorb recent price increases driven by last year's raw material cost hikes. Although tea prices surged by 46% in 2024, production rose to 1,393 million kg from 1,366 million kg in 2022. Exports, after a decline in 2020 and 2021, saw some recovery, totaling 228 million kg in 2023.

Shah remains cautiously optimistic, noting that Indian tea exports are gradually improving after years of stagnation.