Guwahati Tea Auction Centre records 27% rise in sales in April–June 2025 quarter, market sentiment remains bullish


The Guwahati Tea Auction Centre (GTAC) has recorded a robust 27% surge in sales volume during the April–June quarter of 2025 compared to the same period last year, driven by strong demand from domestic blenders, packeters, and exporters. This growth reaffirms GTAC’s position as the largest CTC tea auction centre in the world, highlighting Assam’s continued dominance in the Indian tea industry despite erratic weather and rising input costs.


🔍 Key highlights of April–June 2025 GTAC performance

ParameterQ1 FY26 (Apr–Jun 2025)Q1 FY25 (Apr–Jun 2024)% Change
Total quantity sold68.9 million kg54.3 million kg+27%
Average price/kg₹232.10₹221.40+4.8%
Total auction value₹1,59,887 lakh₹1,20,193 lakh+33%
Highest price/kg₹720₹688+4.6%

(Data: GTAC quarterly market report)


📈 Strong buying by blenders and exporters

Industry experts attribute the surge in auction sales to:

✅ Aggressive buying by major blenders like Tata Consumer Products, HUL, Wagh Bakri, and Amalgamated Plantations to build inventories ahead of the monsoon-heavy flush.
Export orders from Iran, UAE, Russia, and Europe increasing, particularly for premium Assam CTC grades and orthodox teas.
✅ Better leaf quality this season, with lower pest infestation despite scattered rains in upper Assam, leading to higher liquoring standards and improved cup character.


🗣️ Industry voices on GTAC performance

Rajiv Lochan, tea industry analyst, noted:

“The April–June quarter’s strong growth reflects market optimism for the second flush. GTAC’s operational efficiencies, digitised auction systems, and reduced withdrawal rates ensured higher average realisation.”

Niraj Kumar, Secretary of GTAC, stated:

“This growth was achieved despite global shipment constraints. Our focus on transparent e-auctions and efficient logistics continues to strengthen GTAC’s leadership.”


🏭 Impact on Assam tea industry and garden owners

Tea planters in Assam remain optimistic about second flush auction premiums, particularly with July–August being peak production months. Many gardens reported average made tea price realisations exceeding ₹250/kg for quality lots, supporting cash flows amid rising fertiliser, fuel, and wage costs.

However, small tea growers remain concerned about:

  • Unstable green leaf prices, especially in Barak Valley
  • Higher labour expenses under the revised daily wage regime
  • Delayed payments from bought leaf factories in certain districts

🌏 Export trends from GTAC (April–June 2025)

CountryQuantity exported (million kg)% share of total exports
Russia3.234%
UAE2.122%
Iran1.819%
UK1.213%
Others (Europe, Japan, Africa)1.012%
Total exports9.3100%

(Data: Tea Board of India – export auction summary)


📊 Price realisation by grade

Tea gradeAverage price/kg (₹)
BP1305
PF1260
PD185
DUST230
Orthodox510

Orthodox tea prices surged due to export demand from Iran and Europe, while BP1 and PF1 grades saw domestic blenders’ aggressive purchases.


🌦️ Weather impact and crop estimates

The Tea Board of India has reported that Assam recorded a 12% rainfall deficit in June, affecting early second flush plucking. Planters expect the July rains to stabilise production to:

  • First flush (Mar–May): ~118 million kg
  • Second flush (Jun–Sep): ~185 million kg (estimated)
  • Total Assam production FY26 target: 710–720 million kg

🏷️ GST and wage issues remain key concerns

While auction prices have improved, planters continue to urge:

GST relief on tea sold via auction to maintain working capital liquidity.
✅ Resolution of pending subsidies under the Tea Development & Promotion Scheme (TDPS).
✅ Clarity on wage arrears in West Assam estates following recent union-government negotiations.


🗨️ GTAC initiatives for operational efficiency

GTAC is working towards:

  • Full AI-integrated lot classification for faster grading and cataloguing
  • Training modules for brokers and garden executives to handle revised auction software
  • Strengthening export facilitation cells to ease documentation for overseas shipments

💡 Outlook for upcoming quarters

With the peak second flush season ongoing, industry stakeholders forecast continued bullish trends, driven by:

  • Stable monsoon in Assam and North Bengal regions
  • Increased retail consumption during upcoming festive months
  • Steady export orders, especially if Iran’s payment channels remain open under India’s rupee payment arrangement

Disclaimer

This news article is based on statements from tea industry officials, GTAC data releases, and Tea Board of India reports. Prices and export trends are subject to revision as per auction updates and final settlement data.

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