Early rainfall and favourable weather have boosted tea production across Bangladesh, with output rising by nearly 17 per cent in the first eight months of 2026 compared with the same period last year.
Auction prices have also strengthened, offering some relief to tea producers, while the Bangladesh Tea Board has stepped up monitoring to prevent off-auction sales and concealment of production data.
The Board expects annual production to exceed 105 million kilograms if favourable conditions continue and its enforcement measures improve compliance across the industry.
Production reaches five-year high
According to Bangladesh Tea Board data, the country produced 57.9 million kilograms of tea between January and August this year, up from 49.5 million kilograms during the corresponding period in 2025. Relevant sources said this production figure is the highest for the first eight months of a year in the past five years.
The Board has set a production target of 104 million kilograms for 2026, though its projections suggest that output could surpass 105 million kilograms by the end of the year. Although complete production data for September is not yet available, industry stakeholders remain optimistic about meeting the target.
Tea growers attribute the increase largely to timely rainfall and favourable temperatures. Drought and inadequate rainfall during the early months of last year had hampered plant growth, whereas improved weather this season has supported healthier growth and higher yields in tea-growing areas.
Nadim Khan, manager of Udalia Tea Estate in Chattogram, told The TIMES of Bangladesh that favourable temperatures and adequate rainfall had significantly improved production, with his estate recording an increase of approximately 18 per cent compared with the same period last year.
He also credited the Tea Board’s minimum sale price, or floor price, of Tk245 per kilogram with helping producers secure better returns and improving prospects for profitability in the sector.
Steady gains at auction centres
Higher production has coincided with an increase in average tea prices at the country’s auction centres. The International Tea Auction Centre in Agrabad, Chattogram, continues to attract major buyers and wholesale traders, including leading companies operating in the tea market.
According to the Tea Board, 50,396,762 kilograms of tea were sold at the Chattogram auction centre between April and 29 September of the 2026–27 auction year, where the average price stood at Tk282.45 per kilogram.
Sreemangal recorded sales of 1,146,209 kilograms across 12 auctions, at an average of Tk267.54 per kilogram. At Panchagarh, 332,182 kilograms were sold through 12 auctions, averaging Tk265.48 per kilogram.
Figures across the three centres indicate a sustained increase in average auction prices, standing at an average of Tk245.50 per kilogram in the 2025–26 auction year, compared with Tk202.46 in 2024–25 and Tk171.24 in 2023–24.
Monitoring tightened to curb off-auction sales
Alongside efforts to improve production and prices, the Tea Board has intensified monitoring to ensure that factories comply with auction regulations and accurately report their output.
Mohammad Moazzem Hossain, member of the Bangladesh Tea Board, told The TIMES of Bangladesh that timely rainfall and stronger oversight had contributed to positive developments in both production and the market.
The Board is taking action against factories suspected of withholding tea from auctions and selling it through unauthorised channels.
Moazzem Hossain said North Bengal accounted for a substantial share of the country’s tea production, but the volume reaching auctions remained below expectations.
While around 30 per cent of the country’s total tea production was expected to come through the auction system from the region, the current share was approximately 21 per cent.
Scrutiny through power consumption cross-checks
The Board hopes its enforcement measures will increase auction submissions. Moazzem Hossain added that several factories had received show-cause notices over substantial quantities of tea allegedly withheld from auctions, while some establishments had also been fined.
The Board is cross-checking reported production against factory electricity consumption to identify possible discrepancies.
According to Moazzem Hossain, differences between electricity use, estimated output and the quantity of tea submitted for auction can help investigators detect potential irregularities.
