Amid U.S. tariff lows, Guwahati Tea Auction Centre posts high growth


Amid the U.S. tariff lows, the Guwahati Tea Auction Centre (GTAC) has recorded a new high. GTAC, the world’s largest auction centre for CTC (crush, tear, and curl) or granular tea, and a major hub for the global tea trade, registered an “impressive growth” in sales during April-August 2025.

Dinesh Bihani, the secretary of Guwahati Tea Auction Buyers’ Association, said 76.94 million kg of tea were sold during this period. The volume included 72.70 million kg of CTC and dust teas at an average price of ₹223.30 per kg, and 4.24 million kg of orthodox or leafy teas at an average price of ₹279.08 per kg.

In 2024, 62.11 million kg of CTC and dust teas were sold at ₹252 per kg, and 2.18 million kg of orthodox teas were sold at ₹267.88 per kg. In 2023, the corresponding figures were 56.85 million kg at ₹205.37 per kg and 1.23 million kg at ₹221.6 per kg.

“A year-on-year analysis highlights a consistent upward trajectory in volumes. CTC and dust volumes rose by 9.25% in 2024 over 2023, followed by a further 16.39% increase in 2025. Orthodox teas showed stronger momentum, growing by 77.24% in 2024 and nearly doubling again with a 94.5% increase in 2025,” Mr. Bihahi said.

The price trends, however, diverged between the two categories. While CTC and dust saw a sharp 22.71% rise in 2024, prices corrected by 11.39% in 2025, though they remained above the 2023 levels. Orthodox tea, on the other hand, demonstrated steady price appreciation, increasing by 20.88% in 2024 and by a further 4.18% in 2025.

“After reviewing the above data, it can be 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 with 401.47 million kg in 2024,” Mr. Bihani said.

GTAC officials said the tea crop is expected to increase by 20-25% during the current calendar 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. If we compare with the 2023 season, which was a normal crop year, average CTC and dust prices are up by ₹17.94 per kg,” he said.

Dust offtake

A total of 1,078 active manufacturers are registered with the GTAC. Of these, 902 manufacturers sold dust-grade teas through GTAC during April-August. Within this group, 501 marks (55.5%) offered more than 10,000 kg, selling a combined 22.6 million kg at an average price of ₹232.44 per kg. The remaining 401 marks (44.45%) sold less than 10,000 kg, amounting to 1.70 million kg at an average of ₹181.73 per kg.

A mark means a tea garden or a factory name. “This indicates that teas offered in smaller volumes tended to be of lower quality, as reflected in the significant price gap of ₹50.71 per kg compared with larger offerings,” Mr. Bihani said.

Meanwhile, tea associations said the impact of the high U.S. tariff on tea would not be felt immediately.

“During 2024-24, India exported 15.54 million kg to the U.S., which was just 1.33% of the total production of 1,315.77 million kg in the country. However, our goal is to export 300 million kg of tea, which makes every market, including the U.S., important for the Indian tea industry,” Bidyananda Borkakoty, the advisor of North Eastern Tea Association, told The Hindu.

Published – September 04, 2025 08:18 pm IST



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