Low-quality tea floods market, 38% goes unsold at Guwahati Auction Centre

Guwahati, Sept 4: The crisis in the tea industry is exacerbating further with the pushing of low quality tea into the market by manufacturers, with around 38 per cent of the total tea on offer at the auction going unsold this year.

Data obtained from the Guwahati Tea Auction Centre revealed that around 31.65 million kg of tea were sold below the Rs. 200 level, making up 44 per cent of sales (April to August). While the average price of these low-quality tea was Rs 160.76 per kg. the unsold percentage was significantly higher at 43 per cent.

In 2023, the unsold percentage stood at 31 per cent, but it was slightly lower in 2024 (23 per cent) because of crop shortage and early closing of factories announced by the Tea Board, which led to higher demand.

In contrast, a total of 40.86 million kg of tea were sold at prices above Rs 200 per kg at the GTAC this year, accounting for 56 per cent of overall sales. These teas fetched an impressive average price of Rs 272.13 per kg, but there was still an unsold percentage of 29 per cent.

"This clearly indicates that good quality teas are commanding stronger demand, achieving substantially better price realization, while plainer teas continue to suffer from weaker demand, lower prices, and higher unsold volumes. Manufacturers making good teas continue to get remunerative prices," a GTAC official said.

From an analysis of data over the last three years, it was observed that the Assam crop in 2024 was short by 25.9 million kg till August, with total production at 375.57 million kg compared to 401.47 million kg in the previous year.

The shortfall in 2024, combined with the Tea Board's decision to announce an early closure of production from November 30, led to higher auction prices throughout last year, with the market shooting up until October 2024. In the current year, the tea crop is expected to increase by 20-25 per cent.

At the GTAC, CTC and dust volumes rose by 9.25 per cent in 2024 over 2023, followed by a further 16.39 per cent increase in 2025. Orthodox teas showed even stronger momentum, growing by 77.24 per cent in 2024 and nearly doubling again with a 94.50 per cent increase in 2025, Price trends, however, diverged between the two categories.

While CTC and dust teas saw a sharp 22.71 per cent rise in 2024, prices fell by 11.39 per cent in 2025, though they still remained well above 2023 levels. Orthodox teas, on the other hand, demonstrated steady price appreciation, increasing by 20.88 per cent in 2024 and by a further 4.18 per cent in 2025.