The Indian tea industry is in a hot situation: climate change and cost pressures are hitting the market

Climate change on the plantations

The impact of climate change is particularly felt in the northeastern state of Assam: the second most valuable harvest is often hit by heat waves and unpredictable rains. Over the past century, the region’s rainfall has decreased and average temperatures have risen, which favors pests and forces farmers to introduce hitherto unusual irrigation.

The shortening of the harvest is narrowing the supply, and tea prices are increasingly volatile. Workers, especially women, often feel unwell in the heat, and processing plants have to take breaks every half hour to avoid heatstroke. Adaptation measures – earlier pruning, compost pits, increased plant protection – are further increasing costs, while the replacement of old tea bushes dating back to colonial times is often delayed due to lack of resources.

Domestic consumption is on the rise

The tea industry in India, which has been in existence for nearly two centuries, has reached a turning point. Domestic demand has grown by 23 percent in the past ten years, while production has not been able to keep up. In addition to the decline in exports, imports have also become an issue, which symbolically shows the tensions in the sector.

It is not only India that is affected: plantations in Kenya and Sri Lanka are also suffering from the consequences of climate change. The tightening of global supply may ultimately lead to price increases, but sustainability issues and the uncertainty of workers’ livelihoods remain serious challenges for the entire sector.