Restructuring India's Tea Industry Bodies

 Restructuring India's Tea Industry Bodies

Key Points

- Research suggests the global tea market is growing, but the Indian tea industry seems to be facing a decline.

- It appears likely that organizations like the Tea Board of India need restructuring to improve their effectiveness.

- The evidence leans toward the need for changes in hierarchy, operations, and responsibilities to revitalize the sector.

Background

The global tea market is experiencing positive growth, with projections indicating a robust future, while the Indian tea industry, a significant player historically, is reportedly struggling. This contrast highlights potential issues in how the industry is managed and promoted in India.

Current Challenges

Despite India's position as the second-largest tea producer globally, recent reports suggest production drops and challenges like climate change impacts. This decline is concerning given the global market's upward trend, suggesting a need for strategic interventions.

Proposed Actions

It seems necessary to restructure key organizations such as the Tea Board of India, TRA Tocklai, United Planters Association of Southern India - Tea Research Foundation, and Indian Tea Association. This restructuring should focus on enhancing their hierarchy, authority, operations, and responsibilities to better support the industry.

Detailed Analysis

The Indian tea industry, despite being a vital part of the nation's agricultural and economic landscape, is currently facing a downward trend, contrasting sharply with the global tea market's positive growth. This analysis delves into the current state of both markets, the roles of key organizations, and the proposed restructuring to address these challenges, ensuring a comprehensive understanding for stakeholders and policymakers.

Global Tea Market Overview

Recent data indicates a thriving global tea market, with significant growth projections. For instance, [The Business Research Company](https://www.thebusinessresearchcompany.com/report/tea-global-market) forecasts the market to reach $75.5 billion by 2029, growing at a CAGR of 6.3%. Similarly, [Statista](https://www.statista.com/outlook/cmo/hot-drinks/tea/worldwide) projects a 5.56% growth from 2025 to 2029, with a market volume expected to reach US$179.70bn by 2029. Key trends include rising demand for organic and specialty teas, driven by health consciousness and sustainability preferences, as noted in [Market Research Future](https://www.marketresearchfuture.com/reports/tea-market-2155), which predicts the market to grow from $57.08 billion in 2024 to $70 billion by 2035 at a CAGR of 1.88%.

Indian Tea Industry Challenges

In contrast, the Indian tea industry is experiencing a decline, with reports highlighting production drops in key regions like Assam and West Bengal. [Drishti IAS](https://www.drishtiias.com/daily-updates/daily-news-analysis/need-of-reforms-in-tea-industry) (September 2024) noted a 21% and 11% drop in production in these states in 2024, respectively, attributing it to extreme weather events and climate change. Despite being the second-largest producer globally, as per [IBEF](https://www.ibef.org/exports/indian-tea-industry), the industry faces challenges in competitiveness and market share, with [IMARC Group](https://www.imarcgroup.com/india-tea-market) projecting growth from USD 11.5 billion in 2024 to USD 15.0 billion by 2033 at a CAGR of 3.1%, which is slower compared to global trends.

Role of Key Organizations

Several government-funded organizations are tasked with promoting and developing the Indian tea industry, including:

- Tea Board of India: A statutory body under the Ministry of Commerce and Industry, responsible for regulation and promotion, as detailed in [IASbaba](https://iasbaba.com/2023/03/indian-tea-industry/).

- TRA Tocklai: Focuses on research and development, particularly in tea cultivation and processing.

- United Planters Association of Southern India - Tea Research Foundation: Engages in research specific to southern tea estates.

- Indian Tea Association: Represents producers, advocating for policy and development, as mentioned in [Drishti IAS](https://www.drishtiias.com/daily-updates/daily-news-analysis/tea-industry-of-india) (January 2025).

These bodies, funded by the government, are seen as critical to the industry's health, yet their effectiveness is under scrutiny given the current decline.

Proposed Restructuring

Given the disparity between global and Indian trends, restructuring these organizations appears necessary. The proposed changes include:

- Hierarchy: Streamlining decision-making processes to ensure agility and responsiveness.

- Authority: Enhancing their mandate to enforce policies effectively, addressing issues like climate adaptation and market expansion.

- Operations: Improving operational efficiency, possibly through technological integration and better resource allocation, as suggested by the need for sustainable practices in [World Tea News](https://www.worldteanews.com/best-practices/only-way-forward-indias-struggling-tea-industry) (June 2024).

- Responsibilities: Redefining roles to focus on innovation, such as promoting specialty teas and improving export competitiveness, aligning with global consumer preferences for organic and herbal varieties.

Leadership and Governance

As of June 10, 2025, the Minister of Commerce and Industry is Shri Piyush Goyal, with a Twitter handle of @PiyushGoyal, and the Commerce Secretary is Shri Sunil Barthwal, though he does not have a public Twitter handle. Addressing these leaders directly on X is 

Comparative Analysis 

To illustrate the disparity, consider the following table Comparing global and Indian tea market projections:

Sl

Metric

Global Market

Indian Market

1

Market Size 2024

USD 17.42 billion (Grand View Research)USD 11.5 billion (IMARC Group)

USD 11.5 billion (IMARC Group)

2

Projected Size by 2029

USD 75.5 billion (CAGR 6.3%) (The Business Research Company)

USD 15.0 billion by 2033 (CAGR 3.1%) (IMARC Group)

3

Key Drivers

Health consciousness, organic demand

Domestic consumption, export challenges

4

Challenges

Trade tariffs, competition

Climate change, production drops

This table underscores the need for strategic interventions to align Indian growth with global trends.

Conclusion

The Indian tea industry's decline, amidst a thriving global market, necessitates immediate action. Restructuring key organizations to enhance their effectiveness is crucial for revitalizing the sector, ensuring economic benefits, and supporting the livelihoods of millions dependent on tea production. Engaging with leadership through platforms like X can amplify this call to action, urging policymakers to prioritize this vital industry.

---

### Key Citations

- [Tea Market Report 2025 - Tea Industry Overview and Market Share](https://www.thebusinessresearchcompany.com/report/tea-global-market)

- [Tea Market Trends, Size, Share and Industry Research Forecast to 2035](https://www.marketresearchfuture.com/reports/tea-market-2155)

- [Tea Market Size, Share & Trends | Industry Report, 2030](https://www.grandviewresearch.com/industry-analysis/tea-market)

- [Latest Tea Sector Trends: What’s Brewing in 2024?](https://fhafnb.com/blog/trends-in-the-tea-sector/)

- [Tea Market Size, Share, Trends & Growth Report, 2033](https://www.marketdataforecast.com/market-reports/tea-market)

- [Exploring Tea Consumption and Global Tea Market Trends](https://www.mintel.com/insights/food-and-drink/exploring-tea-consumption-global-tea-market-trends/)

- [Tea Market: Global Industry Analysis and Forecast (2025-2032)](https://www.maximizemarketresearch.com/market-report/global-tea-market/19202/)

- [Tea - Worldwide | Statista Market Forecast](https://www.statista.com/outlook/cmo/hot-drinks/tea/worldwide)

- [Tea Market Share, Industry Analysis And Forecast | 2033](https://www.imarcgroup.com/tea-market)

- [Tea Trends: Consumer insights and preferences. The tea market is](https://www.innovamarketinsights.com/trends/tea-trends/)

- [Indian Tea Market Size, Share, Industry Report 2025-2033](https://www.imarcgroup.com/india-tea-market)

- [Tea Industry of India](https://www.drishtiias.com/daily-updates/daily-news-analysis/tea-industry-of-india)

- [Indian Tea Industry | IASbaba](https://iasbaba.com/2023/03/indian-tea-industry/)

- [Tea - India | Statista Market Forecast](https://www.statista.com/outlook/cmo/hot-drinks/tea/india)

- [Tea Farming in India, Top Tea Manufacturers & Exporters in India - IBEF](https://www.ibef.org/exports/indian-tea-industry)

- [Indian Tea Market Size, Trends & Forecast, 2025-2034](https://www.expertmarketresearch.com/reports/indian-tea-market)

- [Need of Reforms in Tea Industry](https://www.drishtiias.com/daily-updates/daily-news-analysis/need-of-reforms-in-tea-industry)

- [India: tea production volume 2023 | Statista](https://www.statista.com/statistics/1236672/india-tea-production-volume/)

- [History of tea in India - Wikipedia](https://en.wikipedia.org/wiki/History_of_tea_in_India)

- [This is the Only Way Forward for India's Struggling Tea Industry | World Tea News](https://www.worldteanews.com/best-practices/only-way-forward-indias-struggling-tea-industry)

- [Welcome to department of commerce, Government of India](https://www.commerce.gov.in/)

- [Ministry of Commerce and Industry (India) - Wikipedia](https://en.wikipedia.org/wiki/Ministry_of_Commerce_and_Industry_%28India%29)

- [Integrated Government Online Directory : Organization Details : Department of Commerce](https://igod.gov.in/organization/Rde83XQBYNG-XPnvjOsx)

- [Integrated Government Online Directory : Organization Details : Ministry of Commerce and Industry](https://igod.gov.in/organization/GM4zv3QBGZk0jujBKgGW)

- [Ministries, Government of India Ministry of Commerce & Industry | Sarkaritel.com](https://www.sarkaritel.com/ministries/ministrydetail.php?min_id=12)

- [Welcome to department of commerce, Government of India](https://www.commerce.gov.in/officer-details-old_bkp/)

- [Secretary Raimondo and Minister Goyal Convene 6th U.S.-India Commercial Dialogue Meeting | U.S. Department of Commerce](https://www.commerce.gov/news/press-releases/2024/10/secretary-raimondo-and-minister-goyal-convene-6th-us-india-commercial)

- [Council of Ministers| National Portal of India](https://www.india.gov.in/my-government/whos-who/council-ministers)

- [Sunil Barthwal - Secretary to Govt of India - Ministry of Labour & Employment, Government of India | LinkedIn](https://in.linkedin.com/in/sunil-barthwal-a68a0a28)

- [Shri Sunil Barthwal - Mcommerce](https://www.commerce.gov.in/contactus/shri-sunil-barthwal/)

- [Sunil Barthwal IAS | Indian Bureaucracy is an Exclusive News Portal](https://www.indianbureaucracy.com/tag/sunil-barthwal-ias/)

- [sunil barthwal: Latest News & Videos, Photos about sunil barthwal | The Economic Times - Page 1](https://economictimes.indiatimes.com/topic/sunil-barthwal)

- [Commerce Secretary Sunil Barthwal](https://ddnews.gov.in/en/tag/commerce-secretary-sunil-barthwal/)

- [India-UK free trade deal could be struck before the end of the year](https://www.telegraph.co.uk/news/2023/07/28/india-uk-free-trade-deal-by-end-2023/)

- [Dr. Sunil Barthwal- School of Business | UPES](https://www.upes.ac.in/faculty/school-of-business/sunil-barthwal)

#TeaCrisis #MakeIndianTeaGreatAgain #TeaIndustry #IndianTea #ReviveTea #CommerceIndia #AgriReforms

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