Tea production in Bangladesh is facing instability. While some years see higher production than targets others fall short. In 2024 labour unrest, rising costs and unfavourable prices led to a decline in tea production raising concerns for the industry’s future.

Details & Context

According to the Bangladesh Tea Board the production target for 2024 was 108 million kg but actual output reached only 83.42 million kg missing the target by nearly 9.9 million kg. In contrast in 2023 the target was 102 million kg and production exceeded it by 918,000 kg. In 2022 however the production goal was 100 million kg but only 93.8 million kg was achieved.

Reasons for Decline in Tea Production

1. Rising Production Costs: The cost of producing one kg of tea ranges from 220-240 BDT but in auction markets, it sells for 200-220 BDT causing continuous losses for tea garden owners.

2. Labour Unrest: Prolonged worker strikes in tea gardens have disrupted production especially in National Tea Company (NTC)-run gardens.

3. Climate Challenges: Severe droughts during the summer season affected yields.

4. High Input Costs: Increased prices of fertilisers, irrigation and pesticides have added to the financial burden.

5. Market Price Issues: Despite the government setting a minimum price of 160 BDT per kg production costs remain higher than the auction selling price.

Tea Production Figures (January–November 2024)

- January: 1.75 million kg

- February: 0.42 million kg

- March: 1.59 million kg

- April: 4.88 million kg

- May: 4.77 million kg

- June: 12.82 million kg

- July: 11.43 million kg

- August: 13.86 million kg

- September: 12.21 million kg

- October: 14.92 million kg

- November: 9.97 million kg

- December: 6.38 million kg

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Major Tea-Producing Regions

Bangladesh has 169 tea gardens across Moulvibazar, Habiganj, Sylhet, Chattogram and the hill districts of Bandarban, Khagrachari and Panchagarh covering a total of 59,018 hectares of land. Moulvibazar alone hosts 90 tea gardens over 33,160 hectares making up 55.19% of the district’s total area.

Industry Expert Insights

According to GM Shibli Chairman of Bangladesh Tea Parliament (BTP) severe drought, increased costs of fertilisers, irrigation and pesticides and long worker strikes in NTC-run tea gardens significantly affected production. Even Finlay’s Bangladesh’s largest tea company saw an 8% production drop compared to targets.

With rising costs, labour unrest and unstable climate conditions, Bangladesh’s tea industry faces major challenges. Unless solutions are implemented the country may struggle to meet tea demand in the coming years.