Published: 11:32 AM, 22 September 2026
Govt plans long-term strategy to restore tea industry’s economic viability
Commerce Minister Khandkar Abdul Muktadir on Sunday said the government would take all necessary measures, including formulating a long-term strategy, to restore the economic viability of Bangladesh’s tea industry and put the sector on a sustainable growth path.
He said the tea industry should gradually move beyond dependence on loans, government incentives and revolving funds and develop the financial strength needed to operate as a commercially viable sector that contributes regularly to the national economy through revenue, taxes and VAT.
“The tea industry must become sustainable and profitable,” the minister said while presiding over the first meeting of the advisory committee formed for the development of Bangladesh’s tea industry at the conference room of the Ministry of Commerce at the Bangladesh Secretariat.
Muktadir stressed that the tea sector has significance far beyond its contribution to exports and government revenue, as the livelihoods of a large number of workers and their families are directly linked to tea gardens across the country.
He said the closure or bankruptcy of even a single tea garden could have a serious impact on workers, their families and surrounding communities.
“So, the sector must be made sustainable and profitable in the interests of workers’ protection, environmental balance and the national economy,” he said.
Referring to Bangladesh’s long history as a tea-producing and exporting country, the commerce minister said disruptions in domestic production could eventually force the country to rely increasingly on imported tea.
He said coordinated action by the government, tea garden owners, financial institutions and other stakeholders would be necessary to address the structural and financial challenges facing the industry and restore it to a stronger position.
The meeting discussed a range of measures aimed at diversifying the income sources of tea gardens while preserving their core functions.
Participants proposed that unused and fallow land within tea estates could be utilised for solar power projects for a specified period without changing the fundamental character of the tea gardens. They also suggested using such land for agriculture, alternative afforestation and other income-generating activities.
Clustering and net-metering-based initiatives were also proposed as potential ways for tea gardens to reduce energy costs and generate additional income.
Participants stressed that such initiatives would require policy approval from the Ministry of Land and other relevant government agencies. They called for greater coordination among the concerned ministries and authorities so that suitable land within tea estates could be used productively without undermining tea production.
The meeting also raised serious concerns over the illegal entry of tea through border routes and the sale of tea outside the formal auction system.
Participants said the practices were creating an uneven playing field for legitimate tea producers and traders while causing significant losses in government revenue.
According to the meeting, auctioned tea is currently sold at around Tk 290-300 per kilogram, whereas smuggled tea is available at approximately Tk 200-220 per kilogram. The substantial price difference, they said, creates incentives for illegal trade and puts compliant businesses under considerable competitive pressure.
The participants therefore called for stronger monitoring along border areas and stricter measures to prevent the illegal movement and sale of tea.
They also proposed rationalising VAT and advance income tax to help address the financial pressures confronting legitimate businesses in the sector.
The meeting further emphasised that tea gardens should improve management efficiency, productivity and internal financial capacity rather than relying primarily on government support, revolving funds or bank loans.
The authorities said garden-specific action plans would be reviewed to identify the individual problems and requirements of different tea estates.
Necessary banking facilities, financial assistance and policy support would subsequently be considered based on the specific needs and viability of individual gardens, according to the meeting.
The approach is expected to help distinguish between gardens facing temporary financial difficulties and those requiring deeper structural, managerial or operational reforms.
The minister also underscored the need for coordinated initiatives to protect employment, maintain environmental sustainability and strengthen the industry's contribution to the wider economy.
The meeting brought together senior officials from key ministries and regulatory agencies, along with representatives of the tea industry and tea traders, reflecting the government's effort to develop a coordinated response to the sector's challenges.
Land Secretary A S M Saleh Ahmed, Finance Secretary Dr Md Khairuzzaman Mozumder, Commerce Secretary Md Ataur Rahman Khan, Agriculture Secretary Md Selim Khan, Power Division Secretary Mirana Mahruk, Bangladesh Tea Board Chairman Major General Md Mesbah Uddin Ahmed, NBR Acting Chairman Ahsan Habib, Bangladesh Bank Deputy Governor Dr Md Kabir Ahmad, Bangladesh Tea Association Chairman Kamran T Rahman and Tea Traders Association President Shah Moinuddin Hasan, among others, attended the meeting.
