Guwahati tea auction prices drop 15%, Assam industry hit by floods and weak exports

 GG News Bureau

Guwahati, Assam ,29th August :Assam’s tea industry is under pressure on multiple fronts, with the average price of CTC tea at the Guwahati Tea Auction Center falling sharply in recent weeks. The dual impact of floods, extreme heat, and pest outbreaks has severely affected both tea production and quality. According to industry data, the average price at Sale No. 26 was ₹264.89 per kilogram, which dropped to ₹221.57 per kilogram by Sale No. 34—a nearly 15% fall in less than two months.

Tea garden management and industry associations state that this is more than just a routine market fluctuation. Floodwaters have inundated many tea-growing regions in Assam, hampering leaf plucking, field management, and crop quality. In areas where water logging persisted, plant recovery is likely to take time—potentially keeping production under pressure in the coming weeks and months.

The Tea Association of India noted that while production in North India looked promising until June, conditions worsened in July and August. Preliminary assessments suggest an 8% drop in production in July, with a similar fall expected in August. This is likely to impact the overall production outlook for North India.

Meanwhile, exports have also been weak. Figures for the first half of 2026 show a decline in export volumes, putting additional strain on industry earnings. Falling auction prices, rising wage liabilities, and bonus payments are together challenging the long-term sustainability of the tea sector.

With both domestic and international headwinds mounting, Assam’s tea industry is bracing for a difficult season, as stakeholders call for urgent support and strategic intervention.