North Indian tea auction prices fall up to 17% as crop and export pressures deepen
Tea auction prices in Kolkata, Guwahati and Siliguri fell by 8% to 17% from July to mid-August 2026. Producers in Assam and West Bengal face weaker liquidity as floods, heat, pests, rising costs and slower exports pressure the industry.
Auction prices slide across three major centres
North India’s tea industry is facing a sharp deterioration in auction prices at the same time as adverse weather and pest damage constrain production. The Tea Association of India (TAI) warned that the combination is weakening producer finances and threatening the sustainability of estates in Assam and West Bengal.
Prices declined across the Kolkata, Guwahati and Siliguri auction centres from July to mid-August 2026, covering Sales 27 to 34. At the Calcutta Tea Traders Association, the average price for crush, tear, curl (CTC) tea fell from ₹291.27 per kg in Sale 26 to ₹238.77 in Sale 34. The decline of about ₹53 per kg represented a fall of 17% in less than two months.
At the Guwahati Tea Auction Centre, the average CTC price dropped by about 15%, from ₹264.89 per kg in Sale 26 to ₹221.57 in Sale 34. Siliguri recorded an 8% decline, with the average falling from ₹201.80 per kg in Sale 27 to ₹182.30 in Sale 34. The Shillong Times described the contraction as a liquidity crisis for the industry after five to six weeks of falling prices.
Supply growth has already reversed
TAI President Shailja Mehta said the price weakness could not be explained by oversupply alone. Tea Board data showed that north Indian output through June 2026 was about 16 million kg, or 5%, higher than a year earlier. That increase was subsequently disrupted by severe flooding in Assam, excessive heat and serious pest and disease infestations elsewhere in the region.
Data collected from TAI member estates indicated that production fell by about 8% in July 2026, with a similar decline expected in August. TAI estimated that cumulative north Indian output would be around 8 million kg below the previous year by the end of August. Further losses are expected, especially in Assam, because tea bushes submerged by recent floods will need time to recover.
This divergence between shrinking crop expectations and falling prices is particularly damaging for producers. Lower auction revenue reduces the cash available for field maintenance, pest control and recovery work just as estates face higher spending on essential inputs, wages and bonus payments.
Export slowdown adds to financial pressure
Foreign demand is providing less support than it did in 2025. India’s tea industry exported a record 285.53 million kg that year, according to official Tea Board figures cited by The Hindu BusinessLine and The Shillong Times. In January-June 2026, however, exports were about 23 million kg, or 18%, behind the corresponding level of the previous year. Mehta linked the weaker performance to the recent geopolitical crisis.
The simultaneous decline in domestic auction values and export volumes leaves Assam and West Bengal estates with fewer ways to offset crop losses and rising operating expenses. For buyers and traders, lower auction prices may reduce near-term procurement costs, but the benefit could prove temporary if flood damage and pest pressure reduce marketable supply in the coming months.
Recovery depends on prices and crop conditions
The immediate outlook will depend on how quickly Assam’s flooded gardens recover and whether output stabilises across the wider north Indian growing region. The industry will also be watching whether lower supply begins to support auction prices and whether export shipments regain ground during the second half of 2026.
Until then, the three auction centres point to broad market weakness rather than an isolated decline. With Kolkata prices down 17%, Guwahati down 15% and Siliguri down 8%, producers are entering a lower-output period with tighter liquidity and a heavier cost burden.
