The Indian Tea Association has proposed a financial support package to the West Bengal government to stabilize the struggling Darjeeling tea sector. Production in the region has fallen to a multi-decade low due to aging plantations and rising operational costs. The industry is seeking funds for factory modernization and worker support to ensure long-term viability.
The tea industry in North Bengal, a vital part of India’s agricultural economy, is facing a severe structural crisis. The Indian Tea Association (ITA) has formally approached the West Bengal government with proposals for a significant financial aid package. This move follows a sustained decline in production, particularly in the Darjeeling region, where output has dropped from 14.49 million kilograms in 1990 to just 5.6 million kilograms in 2025.
Proposal Focuses on Modernization and Support
The industry's roadmap includes a specific request for approximately ₹113 crore to support the Darjeeling tea sector. This capital is intended to address several urgent needs, including employer provident fund contributions, the promotion of orthodox tea varieties, and interest subventions on working capital. The association is also calling for direct support for factory modernization and the introduction of mechanized harvesting to improve efficiency. These measures are designed to help producers manage rising operational expenses and improve the competitiveness of their product in both domestic and international markets.
Rising Costs and Operational Hurdles
Beyond immediate liquidity, the industry is grappling with long-term headwinds that have hampered growth for years. Tea gardens are struggling with aging plantation stock, which reduces yield and quality. Climate volatility, such as unpredictable rainfall and temperature changes, has further impacted the health of tea bushes. These environmental factors, combined with increasing labor costs and competition from lower-priced tea imports, have put immense pressure on profit margins. The industry is also facing compliance challenges regarding pesticide residue standards, which have previously caused disruptions in the procurement of green leaves by factories.
Sectoral Impact and Outlook
The distress is not limited to the Darjeeling region, with producers in the Dooars and Terai areas also reporting severe financial strain. These regions account for the bulk of the state’s total tea output, and stakeholders argue that without structural reforms and government intervention, the sustainability of the regional economy is at risk. The association has suggested reclassifying the tea trade as a seasonal industry to allow for more flexible operational guidelines that align with the natural harvesting cycle. As government officials continue discussions with industry representatives, the primary focus for stakeholders remains whether these policy and financial interventions will be implemented to prevent further decline in one of India’s most iconic sectors.