Assam’s tea industry, one of the largest in the world, is at a critical juncture, requiring innovation and structural reform as emphasized during the 88th Annual General Meeting of the Assam Tea Planters’ Association (ATPA). The region, which produces approximately 1.25 to 1.3 billion kilograms of tea annually—half of India’s total—is facing an economic challenge where despite global tea production increasing from 1.5 billion kilograms in 1950 to nearly 6 billion in 2023, prices have fallen, squeezing profit margins for producers. Industry leaders have highlighted the need to transition from merely increasing production to enhancing value through quality, branding, and innovation.
The industry has shifted significantly; now, Small Tea Growers (STGs) account for over half of India’s production, which introduces new complexities in pricing and quality assurance. Rising production costs due to labor shortages, energy expenses, regulatory challenges, and climate change add to the urgency for reform. Revenue growth is increasingly associated with premium products, enhanced traceability, wellness trends, and digital sales.
Technology is critical for revitalizing the sector, with advancements in artificial intelligence, robotics, and automation being explored for various processes including crop monitoring and quality control. Initiatives to improve worker welfare through eco-friendly housing and alternative livelihoods are essential, as tea estates begin to be reimagined as multi-use landscapes. Diversification into bamboo farming, renewable energy, and tea tourism is under consideration to create additional income streams and decrease reliance on fluctuating tea prices.
Moreover, research institutions and extension services will be vital in guiding the industry through climate adaptation and market changes. ATPA is positioned as a significant player in leading coordinated reforms. The consensus among industry leaders is clear: Assam tea must evolve from a production-centric to a value-centric model, fostering an environment where quality, technology, land, and people are valued as indispensable assets in securing the industry’s future.