Tea industry must embrace innovation, sustainability, and policy reform: ITA Chairman

Guwahati: Calling for a bold transformation of India’s tea sector, Indian Tea Association (ITA) Chairman Hemant Bangur said the industry must “reimagine its approach” to stay viable amid mounting challenges of falling prices, rising costs, and climate disruptions.

Speaking at the 142nd Annual General Meeting of the ITA held in Kolkata, Bangur outlined a roadmap centred on innovation, sustainability, and policy intervention, urging collaboration among industry, government, and technology partners to secure the future of Indian tea.

“The way forward lies in embracing new-age technologies,” Bangur said, adding that AI-driven predictive analytics, IoT soil sensors, and drone-assisted spraying could reduce operational costs by up to 20% while boosting productivity and quality.

“These tools are no longer luxuries but necessities for a competitive tomorrow,” he said. “We can blend our rich traditions with cutting-edge innovation to ensure sustainability, efficiency, and resilience.”

Bangur emphasised that the industry must evolve into a tea ecosystem that preserves heritage, protects the planet, and ensures price stability, calling for cross-sector partnerships, bold policy incentives, and inclusive innovations.

The ITA chairman outlined several immediate priorities:

1.Price stability through optimised production and enhanced exports;
2. Regulated imports with a Minimum Import Price to safeguard domestic producers;
3. Expedited label-claims and MRL notifications for pesticide approvals to strengthen climate adaptability;
4. A financial package for Darjeeling’s survival, where natural disasters and high costs have crippled estates, and
5. Transport subsidies for landlocked regions like Cachar and Tripura to offset logistical costs.

He also renewed the industry’s call for incentivising orthodox tea exports, revising RoDTEP benefits from 1.4% to 5–6%, and revisiting the 100% dust auction mandate once mapping is completed.

Bangur announced the Association’s partnership with Solidaridad Asia to scale up regenerative tea farming, aligned with global regenerative agriculture standards. The five-year program, currently piloted across four member estates, aims to mitigate climate impacts, improve soil and water health, and enhance carbon sequestration.

He said the ITA plans to expand this initiative and help estates leverage their carbon-positive potential, in sync with the renewable energy policies of Assam and West Bengal that promote net-metering and solar integration.

He said the industry’s contribution and participation in Campaigns, amplified by Indian tea's global footprint, must pivot toward the preferences of young consumers— flavours like iced, peach or matcha that resonate with the millennial and Gen Z of today.

"Quality benchmarking via certification marks will elevate trust by signalling reliability and adherence to standards, fostering brand loyalty. Ready-to-drink (RTD) teas are poised for explosive growth fueled by a 5.8% CAGR from 2025 to 2034, due to convenience and innovative flavours. The segment's at-home volume is projected to hit 164 million litres by year-end," he said.

He said branding initiatives, from heritage story-telling to digital marketplaces, can reposition tea as a lifestyle choice amid rising health consciousness, driven by demand for functional and low sugar options.

“Enhanced productivity and inclusive growth must remain our focus,” he said, urging trade unions to support long-term sustainability goals.

Concluding his address, Bangur struck an optimistic note:

“While the path ahead is not without trials, I remain confident that with vision, collaboration, and courage, this industry will navigate the turbulence and emerge stronger. Together, we can create a tea ecosystem where tradition and technology coexist in harmony.”