The gradual increase in tea production in the country has failed to leave any significant mark on exports, mainly due to producers’ heavy reliance on the domestic market and reluctance to cultivate improved tea varieties.
The country produced 9.49 crore kilograms (kg) of tea in 2025, which was 18.7 lakh kg, or 2.01%, higher than the output recorded in 2024, according to the state-run Bangladesh Tea Board (BTB).
Despite the rise in production, Bangladesh experienced a major decline in tea exports during the same period. Tea exports fell by around 8.1 lakh kg.
Industry insiders have blamed the continued downward trend in exports on the lack of an ambitious export-oriented approach among tea producers, despite growth in production.
“We are lagging behind in tea exports mainly for two reasons. First, the cost of tea production in our country is much higher than in many other tea-producing nations. Secondly, the variety of tea we produce does not match international market demand,” said Tahsin Ahmed Chowdhury, chief operating officer for estates of the Consolidated Tea and Lands Company (Bangladesh) Limited.
He said, “We mainly export black tea, whereas other countries export orthodox tea. Our tea producers need to be more courageous.”
“Besides, we have to significantly reduce tea prices to remain competitive in the international market, which is not feasible for us. This is because our costs for electricity, fuel, fertiliser, pesticides and workers’ wages have increased substantially,” Tahsin added.
Currently, Bangladesh ranks eighth among tea-producing countries while competing with major global tea exporters.
China remains unrivalled in global tea production and is also considered the birthplace of tea, producing nearly half of the world’s total output.
India ranks second, followed by Kenya in third position and Sri Lanka in fourth. Turkey holds the fifth position, Vietnam sixth, Indonesia seventh, Uganda ninth and Argentina tenth.
Tahsin Ahmed Chowdhury said, “In Kenya, the average tea production per hectare is around 4,000 kg, whereas in Bangladesh it is only about 1,500 kg. As a result, competing countries can sell tea at prices that we cannot match.”
According to BTB sources, Bangladesh produced 3.14 crore kg of tea in 1970. By 2001, production had risen to 5.31 crore kg, while exports reached 1.29 crore kg. In that year, the country earned Tk894 crore from tea exports.
Although tea exports declined in 2008, foreign exchange earnings from the sector increased due to better-quality tea exports.
That year, Bangladesh produced 5.86 crore kg of tea, while exports stood at 83.9 lakh kg, generating Tk97.69 crore in foreign exchange earnings.
Bangladesh broke all previous records in 2023 by producing 10.29 crore kg of tea. However, despite the record production, the country exported only 10.4 lakh kg of tea, earning Tk27.25 crore.
Over the past two decades, tea exports have dropped to below 10% of total production as domestic demand has surged. People in Bangladesh now consume around 12 crore to 13 crore cups of tea every day.
Shah Moinuddin Hasan, chairman of the Tea Traders Association of Bangladesh, said, “With the expansion of the country’s economy, urbanisation has increased, leading to a rise in tea consumers.”
He said, “Demand in the domestic market is also growing at a pace similar to production growth. As a result, tea fetches better prices in the local market than in the global market. Consequently, producers are showing less interest in exports.”
The introduction of a minimum floor price in tea auctions has also encouraged producers to focus more on domestic sales.
Since the system was introduced in 2024, the BTB has regularly raised the minimum price. Consequently, in the ongoing 2025-26 auction season, tea is being sold at an average price Tk25 to Tk40 higher per kg compared to the previous season.
Bangladesh Tea Association President Kamran Tanvirur Rahman said there was a time when the country exported tea in large volumes, but the sector has now become almost entirely dependent on the domestic market.
“We are now producing nearly one crore kg of surplus tea. At present, there is very little tea left for export,” he said.
“Earlier, until the 1980s, we produced orthodox tea and had different setups in our factories. With the rise in demand in the domestic market for CTC (Crush, Tear, Curl) tea, or black tea, we moved away from that system,” the veteran tea producer added.
He said, “If we want to return to orthodox tea production, we will have to overhaul our factory setups. I do not think many tea producers will invest in that for exports amid high production costs.”
However, the domestic market also has growing demand for premium-quality tea, as many companies import orthodox tea to cater to consumers seeking higher-quality products.
BTB Chairman Maj Gen Md Mesbah Uddin Ahmed acknowledged these challenges and said the government, along with tea producers, is working to address them.
“We have been trying to reduce production costs and bring them closer to those in tea-producing countries like Kenya, India and Sri Lanka,” he said.
BTB chairman said, “Another target is to further increase production, as around 95% of total output is now consumed locally. We will continue improving the quality of black tea while also exploring the production of orthodox and green tea with the aim of entering international markets.”
He said such initiatives would also help meet domestic demand for premium tea.
The annual demand for tea in the country exceeds nine crore kg.
In the latest season, the country’s 172 tea gardens produced 9.49 crore kg of tea. The BTB has set a production target of 10.4 crore kg for the current season.
Bangladesh has 169 tea gardens spread across more than 2.80 lakh acres of land.
Of these, 90 gardens are located in Moulvibazar district, which accounts for around 55% of the country’s total tea production.
Another Sylhet-region district, Habiganj, contributes nearly 22% of the total output.
Source: Daily Sun
Bd-pratidin English/ ANI
