Rajkot: Gujarat, India’s largest tea-consuming state on a per-capita basis, accounts for an estimated 8-10% of the country’s total tea consumption. The state’s tea market is valued at around Rs 3,000 crore annually.Gujarat has hundreds of tea brands that procure leaves from tea-growing states, particularly Assam, and blend teas from different gardens to maintain a consistent taste for consumers. However, sourcing quality tea has become increasingly difficult over the past two to three years, industry players said.Retail tea prices in Gujarat have risen by 10-15% over the past year, traders said. The increase has been attributed to erratic weather in major tea-producing regions, labour-related disruptions and tighter rules governing tea imports.Gujarat has more than a dozen large tea companies with a presence across multiple states, while almost every district has at least one local brand. The state’s per-capita tea consumption is estimated at 1,400 grams a year, compared with the national average of around 840gm.Tea companies procure leaves from several gardens and combine them in specific proportions to maintain the taste associated with their brands. However, fluctuations in crop quality and production have made it difficult to source particular grades of tea, forcing companies to raise retail prices.“The majority of consumers in Gujarat prefer premium tea. When prices increased, some consumers experimented with mid-range, slightly inferior-quality tea. However, many did not like the taste and eventually returned to paying more for premium tea,” said Manish Patel, president of the Gujarat Tea Traders Association.Traders said demand for premium tea remains steady, while the market for lower-quality tea is difficult to predict. However, in a highly competitive market, companies cannot raise prices beyond a certain point as consumers may switch brands.“There are only a limited number of tea gardens that produce quality tea. We have witnessed significant fluctuations in quality over the past few years because of weather conditions, labour issues and other factors. As a result, we have to pay more to procure quality tea,” said Mayur Patel, director of Umiya Tea. He added that demand for medium-quality tea had been rising in Gujarat.Stricter import rules add to pressureSome tea traders have also attributed the rise in prices to stricter import rules introduced by the Food Safety and Standards Authority of India (FSSAI). According to industry sources, the revised framework distinguishes testing requirements based on the final destination of each consignment and standardises product categories, tightening compliance at ports and warehouses.Paras Desai, chairman of the Federation of All India Tea Traders’ Association, said the new import curbs had become a key factor behind the rise in tea prices during the current financial year, even though domestic supply remained broadly steady.“As of Aug, domestic crop production was 40 lakh kg short, which is negligible. But import restrictions have pushed prices up. Across categories, tea has become costlier by around ₹30-35 per kg in the last few months,” Desai said.Desai added that branded players had already passed on part of the higher input costs to consumers. “At Wagh Bakri Group, we increased prices by Rs 20 per kg in April itself,” he said.
