Should India import tea from Kenya? Import surge hits Assam Tea prices and brand

Should India import tea from Kenya? Import surge hits Assam Tea prices and brand

As per recent reports, African tea imports into India have surged, led by a 288% jump in Kenyan shipments in 2024 and a further 45% rise in the first half of 2025, intensifying price pressure and raising brand-dilution risks for Assam tea. Cheaper landed prices for imported teas and blending concerns are now at the centre of policy and industry responses aimed at protecting Assam’s premium reputation. The import of tea from Kenya has worried the local tea growers about their future.

What has changed with tea imports into India?

Kenyan shipments to India rose from 3.53 million kg in Jan–Oct 2023 to 13.71 million kg in Jan–Oct 2024, a 288% jump that made India a leading buyer of Kenyan tea in that period.
In the first half of 2025, Kenya-to-India imports increased by about 45% year-on-year to 6.69 million kg versus 4.61 million kg in Jan–Jun 2024, signalling continued momentum into this year.
In 2024, India imported more than 44 million kg of tea. This prompted the authorities to intensify scrutiny of how domestic and export channels use and label the imports.

How is the import surge affecting prices?

Average landed prices for Kenyan teas into India were about ₹156.73/kg in 2024, while Assam auction averages were roughly ₹252.83/kg up to October 2024, widening a cost gap that pressured domestic realisations.
In 2025, Guwahati auction averages hovered near ₹225.59/kg, around ₹20 lower than a year earlier across April to August, reflecting sustained price softness.
Cheaper imported inputs enabled aggressive blending and sharper price competition, particularly in economy packs and commoditised segments.

How is this impacting the Assam Tea growers?

Small tea growers in Assam reported green leaf prices falling to roughly ₹14–15/kg in 2025, indicating stress at the base of the supply chain.
Planters and associations warn that persistent price compression threatens estate viability and household incomes across Assam’s tea belt.
They have also fagged unsold lots and heavier inventories as auction benchmarks softened through the season.

Why are there brand and labelling risks?

The Tea Board of India issued show-cause notices to exporters and prohibited exporting any blend containing imported tea as Indian-origin, underscoring labelling integrity.
Stakeholders point to risks from older teas released via Mombasa auctions and opaque blending practices that may dilute Assam’s brand equity and consumer trust.
As a result, lawmakers are pushing for stricter origin disclosure and traceability to protect Assam’s provenance and premium positioning.

What is the policy response so far?

The Tea Association of India has asked DGFT to review and regulate duty-free import schemes to curb misuse, improve traceability, and reduce domestic market distortion.
Industry proposals include moving from duty-free imports to a duty-paid regime with post-export refunds to deter diversion into the domestic market.
Calls have intensified for tighter sampling, audits, and swift penalties to ensure compliance across ports and markets.

What is the market outlook?

Industry bodies caution that low-cost imports and opaque blending can continue to depress price discovery unless enforcement and transparency are strengthened.
Discussions on a minimum sustainable price framework reflect concern that current dynamics could erode incentives for sustained quality in Assam tea.
Improved transparency and oversight could stabilise auctions and protect Assam’s premium signal in both domestic and export channels.

Key statistics that summarise the trend

MetricPeriodValueNote
Kenya→India exportsJan–Oct 20233.53 million kg Tea Board of Kenya data 
Kenya→India exportsJan–Oct 202413.71 million kg +288% YoY 
Kenya→India importsJan–Jun 20244.61 million kg Half-year baseline 
Kenya→India importsJan–Jun 20256.69 million kg+45% YoY
India tea imports (all origins)2024>44 million kg Record level 
Avg landed price (Kenya)2024Rs 156.73/kgImport average
Assam auction averageUp to Oct 2024Rs 252.83/kgAuction benchmark
Guwahati auction average2025 (season)~Rs 225.59/kg~Rs 20 lower vs 2024
Green leaf (small growers)2025Rs 14–15/kg Price stress indicator 
India tea imports2019 vs 202315.85 vs 23.65 million kgRising import trend

What should stakeholders watch next?

  1. Monthly import volumes by origin and grade will signal whether African inflows are moderating or escalating, aiding timely policy and market responses.
  2. Enforcement outcomes from Tea Board notices and any new standard operating procedures for tracing and labelling will shape compliance behaviour.
  3. Auction premium spreads between pure Assam lots and lower-grade or blended categories will indicate the resilience of Assam’s brand premium.

What can retailers do right now?

Retailers can print clear, front-of-pack origin panels and disclose blend percentages, aligning with Tea Board directions that any blend with imported tea must not be sold or exported as Indian-origin but as multi-origin, with origins specified.
Store listings and invoices can include origin, batch IDs, and multi-origin status so buyers and regulators can trace products. This will help in reinforcing the 2021 labelling and blending safeguards issued by the Tea Board.
In-store or online, retailers can segment shelves for 100% Assam GI-compliant packs and visibly flag multi-origin blends to protect Assam’s identity and reduce brand dilution risks raised by industry groups.

What can producers do to protect Assam’s brand?

Producers can tighten lot-wise QC and traceability, using scannable batch IDs and origin disclosures consistent with the Tea Board’s multi-origin labelling doctrine to avoid misrepresentation risks.
They can prioritise distinctive Assam styles and consistent tasting profiles to sustain premiums as auctions soften, echoing concerns that opaque blending erodes brand equity and consumer trust.
Engagement with buyers on transparent specifications and labelling can reduce the chance that Assam lots get commingled or marketed in ways that compromise provenance rules highlighted by regulators.

What can policymakers do to stabilise prices and brand integrity?

Policymakers can intensify enforcement of the Tea Board’s requirement that any blend with imported tea be exported as multi-origin. They can enforce the need for clear origin labelling and penalise misbranding or diversion swiftly.
A review of duty-free import schemes and tighter traceability has been requested by industry; shifting to duty-paid imports with post-export refunds is among the proposals to deter domestic leakages.
Authorities can scale risk-based port sampling, market surveillance, and monthly import dashboards while examining minimum sustainable price or fair price-discovery mechanisms sought by planters and small growers

What is the bottom line?

The surge in African tea imports, primarily from Kenya, has lowered input costs for blenders. On the other hand, it has increased pressure on prices and clarity around Assam-origin tea in both domestic and export markets.
Protecting Assam’s brand will hinge on stronger labelling, traceability, and import oversight that preserve fair competition. The need of the hour is to avoid sacrificing provenance and consumer trust at all costs. We need this to maintain the brand value of this priceless treasure of the region.


Source: Internet


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