In 2023, the country achieved a record-high tea production. Consequently, the production target for the recently concluded year was increased. But as adverse weather conditions persisted throughout the year, the sector failed to meet its target. Tea production in 2024 fell short of the target by 15 million kilograms.
From January to November, except for June and October, tea production in every month was lower than the same months of the previous year. The production target for 2024 was set at 108 million kilograms. According to data from the Bangladesh Tea Board, the country produced 86.65 million kilograms of tea as of November. 9.97 million kilograms were produced in November alone across 168 tea estates and small-scale tea operations.
The Tea Board also reported that the country produced 102.92 million kilograms of tea in 2023. And in November 2023 alone, production reached 11.57 million kilograms.
Industry insiders noted that for several years, the price of tea has been lower compared to production costs, resulting in losses for most tea estates. To minimize losses, many estates reduced additional investments, which negatively impacted production. Additionally, irregular and insufficient rainfall in 2024 further disrupted tea production.
They added that the Tea Board introduced a minimum price for tea at auctions in 2024. As a result, tea was marketed at higher prices in international auctions compared to the previous year.
According to available data, tea production in December 2023 was 7.79 million kilograms. Given the weather patterns and average production trends in recent months, industry stakeholders believe that December 2024’s production will not exceed 7 million kilograms.
Moreover, unfavorable weather at the end of the year has raised concerns among growers and estate owners about tea production in the first half of 2025.
When contacted, Kamran Tanvirur Rahman, President of the Bangladesh Tea Association, told Bonik Barta, “Tea estates have been incurring losses for a long time. Although import restrictions were imposed to enhance domestic capacity, tea prices at auctions fell. This, combined with adverse weather, has impacted production.”
Tea produced in the country is marketed through three international auctions. In addition to the oldest Chattogram Tea Auction Center, estates market their tea through the Sreemangal and Panchagarh (online) auctions. The Chattogram auction handles the highest volume of tea transactions. Despite a domestic demand of about 90 million kilograms of tea, production exceeds this amount. Furthermore, Bangladesh lags in exporting tea to the global market, leaving surplus tea unsold for several years. This has led to increased stockpiles, affecting prices.
Anjan Dev Burman, Senior Manager of the country's leading tea auctioneer, National Brokers, told Bonik Barta, “This year, tea supplies at auctions are significantly lower. Since tea prices were low at auctions last year, estates are sending less tea to auctions this year. With lower supplies, prices are rising.”