Tea estate owners in Bangladesh suffered continuous losses for several years. As auction prices remained lower than production costs, both tea production and quality in the country declined steadily. However, the situation has changed after a minimum price floor was introduced at auctions for two consecutive years. In the latest 2025–26 auction season, nearly 175 tea estates and small-scale tea growers earned around BDT 4.65 billion more in sales revenue compared with the previous year.
Bangladesh currently has 172 tea estates. In addition, small-scale tea cultivation is carried out in the northern region and two hill districts. Although prices of various commodities increased in the country following the COVID-19 pandemic, tea prices did not rise. As auction prices remained stagnant, tea estates had to sell tea at a loss. Nearly one-third of the country’s tea estates consequently became financially distressed. Many estates also faced labour unrest after failing to pay workers’ wages. To cope with the situation, several estate owners reduced production and shifted toward producing lower-grade tea.
In response to the crisis, the commerce ministry introduced a minimum price floor for tea auctions in 2024 for the first time in the country, based on liquor-rating assessments. As a result, the average price of tea increased by BDT 30 per kilogram within a year. However, since the cost of production (COP) remained even higher, many estates still failed to escape losses. To protect estate owners, the Bangladesh Tea Board introduced a second round of minimum price floors for tea purchases at auctions in June last year. This move increased tea sales earnings by BDT 4.65 billion within a year.
The Consolidated Tea and Lands Company (Bangladesh) Chief Operating Officer, Tahsin Ahmed Chaudhury, told Bonik Barta, “The floor price has breathed new life into the country’s struggling tea sector. Since tea fetched good prices in the concluded auction year, production is expected to remain strong in the current season as well. As tea is now receiving better prices at auction, estates in underdeveloped areas such as Panchagarh are prioritising quality over quantity.”
He described the development as a positive sign for the tea sector.
In total, around 90.65 million kilograms of tea were sold at the country’s three auction centres — Chattogram, Sreemangal, and Panchagarh — during the concluded 2025–26 auction year, according to the Bangladesh Tea Board data. At an average price of BDT 242.20 per kilogram, tea estate owners earned around BDT 22.41 billion in revenue. In the previous season, owners earned BDT 17.76 billion from the sale of roughly 87.72 million kilograms of tea. This means tea estate owners’ sales revenue increased by around BDT 4.65 billion within a year. Nearly all estates producing quality tea returned to profitability during the latest auction season, stakeholders in the tea sector said.
The tea production target for this year has been set at 104 million kilograms. However, against a target of 103 million kilograms in 2025, actual production stood at approximately 94.92 million kilograms. The Tea Board expects tea production to surpass the target this year, encouraged by the favourable prices achieved in the latest auction season.
Although tea cultivation in Panchagarh began on a limited scale, the district has now become the country’s second-largest tea-producing region. In 2025, 21 percent of the country’s total tea production came from the northern district. Moulvibazar, the leading tea-producing district, accounted for 47 percent of total production, while Habiganj produced 16 percent and Chattogram 11 percent.
Previously, delayed leaf collection in Panchagarh estates often reduced tea quality. Consequently, despite being the second-largest producer, small tea growers there had to sell tea at auctions for only BDT 100–150 per kilogram. In the first auction of the latest auction year, however, tea in Panchagarh sold at an average of BDT 246.13 per kilogram. The improved tea quality from the country’s second-largest producing district played a major role in raising average tea prices during the latest auction season, stakeholders noted.
Asked about the issue, Kamran T Rahman, president of the Bangladeshiyo Cha Sangsad, told Bonik Barta, “It’s true that tea prices at auctions have increased compared with earlier periods because of the floor price. But rising fuel costs and other production-related inputs mean that estates are still unable to recover their investments even at these prices. Banks’ reluctance to finance tea estates has pushed entrepreneurs in the sector toward a major crisis.”
Despite the situation, he said tea entrepreneurs are continuing efforts to meet domestic demand by producing quality tea while taking advantage of favourable weather conditions.