The Tea Association of India on Friday expressed concern over declining auction prices in the north Indian tea industry in recent months, raising apprehensions about the sustainability of the business.The planters’ body said the tea industry was facing a difficult situation due to floods in Assam, excessive heat and severe pest and disease infestations that have hampered production during the current cropping season.The TAI said auction prices had declined by up to 17 per cent from July to mid-August, while supplies increased marginally by 5 per cent compared to last year and were likely to decline in the coming months."The auction price figures of north Indian tea industry recently reflect a precarious state of affairs in the industry, coupled with the onslaught of flash floods, excessive heat and severe pest and disease infestations hampering production of the crop during the current cropping season," TAI president Shailja Mehta said in a statement."A grim reality is unfolding in Assam and West Bengal’s tea industry, where plummeting auction prices in the last five to six weeks have sparked widespread concern, putting the sustainability of the tea industry at grave risk," she added.The statement said the region's three prominent tea auction centres at Kolkata, Guwahati and Siliguri witnessed a notable decline in tea prices from July to mid-August (Sale 27 to 34).According to Tea Board classification, tea-growing regions of West Bengal, Assam and its neighbouring States are taken together as north India industry, while Tamil Nadu, Keralam, etc. form the south India industry.At the Calcutta Tea Traders Association (CTTA), the average CTC sale price dropped from ₹291.27 in Sale No. 26 to ₹238.77 in Sale No. 34, indicating a drop of ₹53, or 17 per cent, in less than two months.At the Guwahati Tea Auction Centre (GTAC), the average CTC sale price fell from ₹264.89 in Sale No. 26 to ₹221.57 in Sale No. 34, a decline of around 15 per cent.The STAC, Siliguri, has also registered a drop of around 8 per cent during the same period, with prices going down from ₹201.80 in Sale no. 27 to ₹182.30 in Sale no. 34.TAI president maintained that this phenomenon cannot be attributed to oversupply.While production figures released by the Tea Board for the current cropping season till June 2026 showed a marginal increase of around 16 million kg, or 5 per cent, in North India compared to last year, the trend had been disrupted by severe floods in Assam, excessive heat and extreme pest infestations in other tea-growing areas of the region, she claimed.She said data received from TAI member estates indicated an 8 per cent drop in crop production in July 2026, with a similar decline expected in August.Taken together, it is estimated to lead to an overall drop of around 8 million kg in north India by the end of this month as compared to last year, the TAI chief said, adding that it is further estimated to drop in the coming months, particularly in Assam, as the submerged tea bushes due to the recent floods will take time to recover.The export scenario is also not encouraging this year due to the recent geopolitical crisis, Mehta said.While the tea industry registered a record export of 285.53 million kg in 2025, exports were lagging behind last year’s figures by around 23 million kg, or about 18 per cent, during the January-June period, according to official Tea Board data.The TAI expressed concern over the future of the tea industry in Assam and West Bengal amid falling auction prices and rising input costs, including wages, as well as higher outgo on account of increased bonus payments.Published on August 28, 2026