Bangladesh Tea Industry: A Rich Legacy with Untapped Global Potential
Gaganendra Jha 🌎
SME - Tea & Coffee | Consultant | Mentor | 30+ Years of Excellence in Plantation, Blending, Packaging, Specialty Tea, Quality Assurance & Market Expansion | The TEA TROTTER
History of Tea in Bangladesh
Tea cultivation in Bangladesh has a rich history that traces back to the British colonial era. It was during the early 19th century that the British first recognised the region’s potential for tea cultivation. In 1840, the first tea garden was established in Chittagong, marking the formal beginning of tea production in what is now Bangladesh. The region’s climate, with its abundant rainfall and fertile soil, was found to be ideal for growing tea, leading to the rapid expansion of tea gardens, particularly in the Sylhet region.
Malnicherra Tea Estate, also known as Malnichhera Tea Garden, is located in the Sylhet district and holds the distinction of being the oldest tea garden in Bangladesh. Established in 1849 by Lord Hurdson, it spans over 1,500 acres and is recognised as both the largest and the first tea estate in the country. This historic tea garden played a pioneering role in the development of Bangladesh's tea industry and continues to be a key player in the region's tea production to this day.
Throughout the British period, tea cultivation was primarily driven by European planters, and much of the production was geared towards export to meet the growing demand for tea in Europe. By the early 20th century, tea had become one of the key industries in British India, with the Sylhet region emerging as a major hub for tea production.
Post-Independence Era (After 1971)
The political landscape of tea cultivation in Bangladesh underwent a significant shift after the country gained independence from Pakistan in 1971. Post-independence, the tea industry became an essential part of Bangladesh’s agricultural and export sectors.
In 1972, The Bangladesh Tea Board (BTB) was established to oversee the growth, development, and regulation of the tea industry. The BTB took on a crucial role in modernising tea production practices, implementing policies to enhance the quality of tea, and providing support to both large estates and small-scale tea farmers. It also began focusing on diversification, encouraging local consumption alongside the export market.
Challenges and Expansion (1970s–1990s)
The tea industry in Bangladesh faced numerous challenges in the decades following independence, including political instability, limited infrastructure, and competition from other tea-producing countries like India and Sri Lanka. However, with support from the government and international agencies, the industry gradually recovered. Tea estates in Sylhet, Moulvibazar, and Habiganj became the cornerstone of Bangladesh’s tea output.
In the late 1980s and 1990s, there was a concerted effort to increase both production and exports. The government introduced various incentives for tea growers and launched campaigns to promote Bangladeshi tea in international markets. These measures helped increase output, but they also highlighted the need for improvements in productivity, quality control, and marketing.
Recent Developments
In the 21st century, Bangladesh’s tea industry has seen a steady increase in production, aided by technological advancements and the growing popularity of small-scale tea farming. The expansion of smallholder tea plantations in regions like Rangamati and Panchagarh (the northernmost district of Bangladesh) has added a new dimension to the country’s tea map, moving beyond the traditional strongholds of Sylhet and Chittagong.
Bangladesh is now a notable player in the global tea market, producing both CTC tea and Orthodox tea. The country has also begun experimenting with specialty teas, such as green tea and herbal infusions, to cater to evolving consumer preferences both domestically and internationally. Today, the country is ranked among the top tea-producing nations, with over 160 tea estates contributing to the economy and providing employment to millions.
Key Tea Growing Regions
Tea Varieties Produced
Industry Statistics (2013-2023) Bangladesh's tea production has increased steadily over the last decade, with 2023 projected to produce 98 million kg. However, domestic consumption has surged, with 85% of tea now consumed locally, leaving only a fraction for export. Despite producing around 96 million kg in 2022, only 2.4 million kg were exported. The challenge is balancing domestic needs with boosting exports.
Challenges Facing the Bangladesh Tea Industry
Opportunities for Growth
Sustainability Initiatives
Bangladesh is increasingly focusing on organic farming, especially in Panchagarh. Implementing sustainable farming practices can help combat soil degradation and improve the environmental footprint of tea production.
Recent Developments
Unique Characteristics of Bangladeshi Tea
Tea from Sylhet is known for its full-bodied flavour with malty undertones, much like Assam tea. Recent efforts to produce orthodox and white teas position Bangladesh for entry into the premium tea market.
The Role of the Bangladesh Tea Board (BTB)
BTB plays a pivotal role in improving productivity, maintaining standards, and supporting research through BTRI. Initiatives to replant aging gardens with high-yielding varieties are vital to sustaining production.
Panchagarh: The Rising Star
This new tea-producing region has transformed the local economy, contributing to Bangladesh's expanding tea industry with high-quality, distinct teas attracting international buyers.
Labor Dynamics and Tea Worker Rights
While over 300,000 workers are employed in the tea industry, many faces low wages and poor conditions. Recent efforts by NGOs and the ILO aim to improve wages and working conditions.
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Climate Change and Its Impact
Bangladesh’s tea industry is vulnerable to erratic weather patterns. Sustainable farming practices, including organic farming and rainwater harvesting, are becoming more crucial to mitigate climate risks.
Tea Exports vs. Domestic Consumption
With domestic consumption now accounting for 85% of production, Bangladesh's tea export volumes have sharply declined. Efforts are needed to revitalise exports through niche markets and specialty teas.
Economic Importance and Government Support
Tea contributes significantly to Bangladesh's GDP and provides substantial employment. Government incentives like tax breaks and subsidies for replanting are aimed at boosting productivity and export potential.
Tea Tourism Potential
Regions like Sylhet and Panchagarh offer tea tourism opportunities that could provide additional revenue streams. Eco-friendly stays and plantation tours could attract both domestic and international visitors.
Health Benefits of Bangladeshi Tea
Bangladeshi black and green teas are rich in antioxidants, catering to health-conscious consumers. Organic and herbal teas could further tap into the growing global wellness market.
Policy Recommendations for Boosting Tea Exports
Stricter quality control, certifications (Organic, Fair Trade), and geographical indication (GI) tagging can help Bangladesh enter premium tea markets. A global marketing campaign showcasing the uniqueness of Bangladeshi tea can raise awareness.
Exploring new export markets like Southeast Asia and Africa and leveraging trade agreements could reduce reliance on traditional buyers and open up new opportunities.
Replanting aging tea gardens and upgrading processing facilities with modern technology would boost productivity, reduce costs, and enhance competitiveness.
Expanding into high-value segments such as organic, green, and functional teas could help Bangladesh capture niche markets with higher profit margins.
Increased government support through export subsidies, R&D grants, and establishing Special Economic Zones (SEZs) for tea processing would incentivise producers to focus on exports.
Investing in sustainable practices and climate-resilient tea varieties will help Bangladesh's tea industry remain competitive and secure long-term growth.
Forming partnerships with global retailers and tea associations will enhance market access and help promote Bangladeshi tea globally.
Developing tea tourism can create brand ambassadors for Bangladeshi tea, enhancing its global reputation and attracting new buyers.
E-commerce and direct-to-consumer sales through digital platforms could enable smaller producers to access global markets directly.
GAGANENDRA JHA
TEA TROTTER
Senior Manager-Sales and Marketing at Shaw Wallace Bangladesh
2moLot of informative discussion.
TEA TASTER & BLENDER (25+ Years Experience)
2moA good article to know the knowledge of tea in Bangladesh.