Indian tea prices have climbed 18% in the first four months of 2025, driven by surging demand from Russia, Iran, Iraq, and the UAE. Export volumes are expected to surpass last year’s levels, with auctioneers and industry insiders predicting firm prices in the coming months.
According to Tea Board data, the average wholesale price of tea rose to ₹160.49 per kg between January and April, compared to ₹136.41 per kg during the same period last year. The increase spans both premium orthodox teas and more widely consumed CTC dust and leaf teas from Assam, West Bengal, and South India.
Major consumer goods companies, including Hindustan Unilever and Tata Consumer Products, are stepping up purchases for both domestic and international markets. However, packet tea brands remain cautious about passing on the cost hike to Indian consumers, fearing a loss in market share.
Mohit Agarwal, Director of Kolkata-based exporter Asian Tea, noted that Middle Eastern nations and Russia are showing a strong appetite for orthodox teas. “If this momentum continues, India’s tea exports could easily surpass last year’s levels,” he said. Assam orthodox teas have already fetched record prices at auctions, reaching ₹314 per kg.
India exported 255 million kg of tea worth ₹7,111 crore in 2024, overtaking Sri Lanka to become the world’s third-largest tea exporter. Of this, 154.81 million kg came from Assam and West Bengal, while South India contributed nearly 100 million kg.
Production has also seen a year-on-year rise. The Tea Board reported that output in the January-April period touched 203.14 million kg—an increase of nearly 29 million kg.
The Calcutta Tea Traders Association attributes part of the price hike to the government’s decision mandating 100% auctioning of CTC dust teas, prompting aggressive buying by top FMCG players. Prices of CTC teas have risen by ₹19–₹20 per kg as a result.
While the second flush teas are expected to enter auction houses soon, industry leaders remain optimistic that strong overseas demand will continue to support record production and pricing in 2025.