The tea industry in Bangladesh has seen robust recovery in the ongoing auction year thanks to elevated demand alongside favourable prices for the evergreen shrub.
Besides, the current trend comes as a much-needed change for tea growers, who endured successive losses in the previous seasons.
According to Bangladesh Tea Board, auction sales increased 14.28 per cent year-on-year in the May-September period. At the same time, the average price per kilogramme (kg) of tea rose 10.97 per cent.
In terms of monthly performance, tea prices averaged at about Tk241 per kg in September, up from Tk205 the year prior and Tk187 in 2023.
Tea growers said this rising trend has brought some respite after two difficult years, when auction prices were persistently low.
Around 4.18 crore kgs of tea were sold at auction from May to September this year. During the same period in the previous fiscal year, total sales were 3.58 crore kg, indicating growth of 14.28 per cent.
Md Nadim Khan, manager of the Udalia Tea Garden in Chattogram, said the last two years had been particularly challenging due to depressed auction prices.
“This year, prices are rising continuously. So far, the price per kg is up by about Tk30 compared to last year. This is very encouraging for garden owners,” he added.
However, he noted that production targets could not be met this season. Severe drought in April and May damaged many tea plants, disrupting output.
“Because of lower supply, prices may increase further toward the end of the season,” Khan said.
Bangladesh produced 9.30 crore kgs of tea in 2024, down from 10.29 crore kgs in 2023. The production target for 2025 is 10.3 crore kgs but only 6.09 crore kgs were produced by September, down 1.38 percent compared to the same period in 2024.
Production during January-September 2023 was significantly higher at 6.89 crore kgs.
Garden owners highlighted that their expenses rise by about 5 per cent annually due to increased wage payments and operational costs.
So, without higher auction prices, they cannot meet the overall cost of production. As such, the current price hike has raised hopes of recovering losses accumulated over the past few years.
Tanvirur Rahman, chairman of the Bangladesh Tea Association, told TIMES that despite the higher auction prices, many estates are still unable to cover production costs.
“Price adjustments are not yet sufficient to offset rising expenses,” he said.
Rahman also said the industry is unlikely to meet its production target this year due to the erratic weather patterns.
“Both excessive drought and heavy rainfall have hampered production. We expect total tea production this year to be around 9 crore kgs,” he added.
Bangladesh has 167 tea gardens spread across Chattogram, Sylhet, Srimangal and Panchagarh. Auctions are conducted in Chattogram, Srimangal and Panchagarh.
For the 2025–2026 auction year, which runs from May to April, the schedule includes 48 auctions at the Chattogram centre, 48 at the Srimangal centre, and 26 at the Panchagarh centre.
