Tea Price Hike 2025: Big Shock for Tea Drinkers as Prices Surge Across India
Tea lovers across India are in for a bitter surprise, as the price of tea has witnessed a sharp increase of 15–25% in recent weeks. The sudden surge in retail and wholesale tea prices has left both traders and consumers concerned, with experts attributing the rise to lower production, adverse weather, and escalating input costs. A confluence of extreme weather events, geopolitical tensions, and inflationary pressures has triggered a significant tea price hike—a phenomenon experts warn is a big shock for tea drinkers and signals deep instability in one of the world’s most vital commodity markets.
Tea Prices Surge Nationwide
According to industry reports, the average price of CTC (Crush, Tear, Curl) tea — the most widely consumed variety — has jumped from ₹220 per kg to ₹270–₹290 per kg in the retail market. Premium Assam and Darjeeling teas have seen even sharper hikes, with some variants now retailing above ₹600 per kg.
In key tea-producing regions such as Assam, West Bengal, and Nilgiris, production has fallen by nearly 10–12% compared to last year due to erratic monsoon patterns.
Why Are Tea Prices Rising?
Several factors have contributed to the ongoing tea price inflation:
- Poor Rainfall & Climate Impact: Unseasonal rains and prolonged dry spells in Assam and North Bengal reduced tea leaf quality and yield.
- Rising Fertilizer & Fuel Costs: Higher transportation and input expenses have added to manufacturing costs.
- Export Surge: Growing demand from the Middle East and Europe has tightened domestic supply.
- Labor Cost Revisions: Wage increases for tea plantation workers have raised production expenses.
Impact on Consumers and Retailers
For everyday tea drinkers, the price jump has started to pinch household budgets. Popular FMCG brands like Tata Tea, Red Label, and Wagh Bakri have reportedly increased retail pack prices by ₹10–₹20 per 250g, depending on the blend.
Tea stall owners and small retailers are also feeling the heat. Many are being forced to raise the price of a cup of tea from ₹10 to ₹12–₹15, especially in metro cities.
“We can’t afford to sell tea at the old rate anymore. Prices of all grades have gone up sharply,” said Ramesh Das, a tea vendor in Kolkata’s Howrah district.
Industry Viewpoint
The Tea Association of India (TAI) has stated that the hike is a “necessary correction” to ensure sustainability for tea planters.
“For years, producers have suffered due to stagnant prices. The recent increase will help offset higher labor and input costs,” said a TAI spokesperson.
However, analysts warn that if inflation persists, consumption may slow down in lower-income segments, especially in rural markets.
Global Trends Add Pressure
Globally, tea prices have firmed due to reduced exports from Kenya and Sri Lanka, two of the world’s major suppliers. With India being both a large producer and consumer, the domestic market has had to balance internal demand with lucrative export opportunities.
What Lies Ahead
Experts expect prices to remain elevated through early 2026 unless production improves with better weather conditions. FMCG companies may explore blended teas and smaller pack sizes to absorb some of the impact on consumers.
For now, tea enthusiasts might need to prepare for a slightly costlier morning cup as India’s favorite beverage faces a new phase of inflation.
Conclusion
The tea price hike has turned into a national talking point, affecting millions of households and small businesses. From daily wage earners to urban tea cafés, the ripple effect is being felt across all sections.
While the increase may help stabilize the struggling tea industry, for consumers — it’s undoubtedly a bitter brew to swallow.
