Overview
Tea consumption in Bangladesh is on the rise, with a per capita consumption of around 562 grams in 2021. Population growth, improved economic conditions, urbanization, and socio-economic factors are responsible for this growth. We expect this growth to benefit Bangladesh’s young population, with 26% under 15 and 27% between 15 and 30. However, if production levels remain static, the country will face a significant tea production shortfall of 33.93 million kg to 37.97 million kg annually by 2030. Tea cultivation has expanded to other parts of Bangladesh, with smallholder tea farmers playing a significant role in this transformation. However, inefficiencies plague the tea value chain, with smallholder tea growers often receiving the lowest share of consumers’ expenditures. This has led to a decline in returns on tea investment, causing many farmers to revert to traditional cereal production. Solidaridad is conducting a comprehensive study to identify suitable areas for tea cultivation, contributing to the holistic and sustainable development of the tea sector in Bangladesh, with a specific focus on small tea growers. The findings could shape the future of tea production in Bangladesh, ensuring its self-sufficiency in meeting the nation’s tea demand while uplifting the livelihoods of its smallholder tea farming community. However, the objective is to create a business case for smallholder farmers to invest in tea production areas in Panchagrah, Lalmonirhat, and Thakurgaon. This includes identifying suitable areas, calculating the ROI for tea production, comparing it to current crop yields, and developing a strategy to promote quality produce, a better economic return for growers, and a better value chain for new farmers.
