India,
the world’s second-largest tea producer after China, is set to implement a
blockchain and artificial intelligence (AI)-powered
auction system to enhance transparency and streamline operations within the tea industry.
The northeastern state of Assam has announced its plans to collaborate with various tea industry stakeholders to establish India’s first AI-driven, blockchain-based tea auction platform. This innovative system is poised to transform the tea trade by ensuring secure
transactions
and promoting fair pricing practices. By leveraging these advanced technologies, the platform is expected to not only boost the efficiency of the tea industry but also strengthen Assam’s reputation as a global leader in the tea sector.
As the largest tea-producing state in India, Assam contributes more than 50% of the nation’s total tea output, making this initiative a key step in solidifying its dominance in the global tea industry.
“Assam will work with tea industry stakeholders to introduce India’s first AI-driven, blockchain-based tea auction system to enhance transparency and efficiency,” stated the
Assam Budget 2025-2026.
“This digital platform will revolutionize the tea trade by ensuring secure transactions and fair pricing. The initiative will strengthen Assam’s position as a global leader in the tea industry.”
Presented by Assam’s finance minister, Ajanta Neog, the
2025-26 fiscal year budget
highlights Assam’s commitment to evolving its tea auction framework.
Despite the critical role Assam plays in India’s tea production, longstanding issues such as price manipulation and a lack of transparency have hampered the auction system. The integration of blockchain and AI technologies is set to
revolutionize the tea industry,
ultimately driving economic growth for both Assam and India.
This
digital transformation
aligns with Assam’s broader goal of embracing advanced technologies to foster sustainable development. By adopting these innovations, Assam sets a benchmark for other states and industries to follow. The new platform will aim to provide equal market access for all participants, from small-scale farmers to large estates, offering data-driven insights,
fair pricing,
and a secure, decentralized system to
eliminate fraud. In addition to auctions, the blockchain system is expected to enhance supply chain transparency, while AI will streamline the auction process by analyzing market trends, reducing delays, and improving efficiency.
Indian tea auctions are among the largest and most influential globally, with prominent centers located in cities like Kolkata, Guwahati, and Cochin. These auctions are vital for setting prices and determining the supply of tea in the market. Producers present samples of their tea, and potential buyers—ranging from traders to packers and distributors—place bids based on the quality and demand for the tea, which plays a crucial role in ensuring transparent and fair transactions for all parties involved.
Tea, or “chai” as it is commonly known in India, transcends being just a beverage; it is threaded deeply into the nation’s cultural fabric. India’s relationship with tea spans centuries, evolving into the world’s second-largest producer of this cherished drink. Favorable climatic conditions and diverse agricultural landscapes make India an ideal location for tea cultivation, critical to the nation’s agricultural identity. Tea encapsulates social interactions, daily rituals, and religious practices, affirming its significance in everyday life.
According to data from the Tea Board of India, India produced 1,284.78 million kilograms of tea during the year 2024, showing a decline of 7.8% from 2023’s output of 1,393.66 million kilograms. This reduction can be attributed to adverse weather conditions such as heatwaves and floods, which disrupted productions at crucial harvesting periods. The decrease in supply has led to a noticeable increase in tea prices, which, in 2024, reached an average of 198.76 rupees ($2.32) per kilogram, a surge of nearly 18% from the previous year.
Conversely, Indian tea exports saw an impressive spike of nearly 10% in 2024 compared to 2023, fueled by rising demands from markets like the
UAE,
Iraq, and
Russia.
The Tea Board reported that India exported approximately 254.67 million kilograms of tea between January and December 2024, which represents a significant 10% increase compared to the 231.69 million kilograms exported during the same period in 2023.
India predominantly exports CTC (crush-tear-curl) variety tea to countries like Egypt and the
United Kingdom,
while the orthodox variety tends to be shipped to markets in Iraq, Iran, and Russia.
Assam’s Other Initiatives
Assam is also actively pursuing other innovative projects, including plans for India’s first AI-powered
anti-deepfake
and
cyber surveillance
laboratory.
“Assam Police will set up India’s first AI-based lab to combat deepfake threats and enhance cyber surveillance. This facility will elevate cybersecurity, digital forensics, and
online threat detection.
The initiative aims to position Assam as a leader in AI-driven law enforcement and cybercrime prevention,” as noted in the provincial government’s budget document.
The Assam government’s modernization efforts also encompass the land revenue collection system, transitioning towards the National Generic Document Registration System (NGDRS) under the
“One Nation, One Software” initiative. Plans are in place to utilize geospatial tools for precise land valuation and implement blockchain in NGDRS, ensuring secure and faster transactions.
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