Utilization and Economic Potential of Tea Waste: A Case of Assam Tea Economy

Abstract

Tea is the second most widely consumed beverage in the world after water. Assam plays a pivotal role in its global supply as Assam produces more than half of India’s total tea output. While the industry generates substantial revenue and employment, it also produces large volumes of tea waste in the form of stalks, stems, off-grades, fannings, and rejects. These wastes are often underutilized or discarded. Such waste represents a lost opportunity for value addition within the tea economy. Globally, tea by-products are increasingly being valorized into products such as bio-fertilizers, biochar, nutraceuticals, cosmetics, packaging materials, and animal feed. This creates a potential opportunity for Assam to integrate tea waste into its agribusiness value chains. This paper explores the magnitude of tea waste in Assam. The paper tries to identify opportunities for its utilization based on global best practices, and assesses the economic and environmental potential of tea waste valorization. The study is based on secondary data and literature review that positions tea waste as a strategic raw material that could contribute to circular economy transitions, rural entrepreneurship, and sustainable livelihoods. Findings suggest that tea waste valorization can diversify Assam’s tea economy, reduce environmental footprints, and generate new income streams for small growers and cooperatives. However, challenges related to technology adoption, awareness, and policy support remain critical. The paper concludes with recommendations for industry stakeholders, policymakers, and research institutions to transform Assam’s tea waste into an engine of agribusiness innovation.