Why Indian farmers are chasing Matcha? Sarthak Ahuja's take on its Rs 20,000 per kg price tag goes viral

Time of India

20-07-2025

Matcha isn't just trending in your favourite cafe menu; it's also turning into green gold for Indian farmers. Recently, this was pointed out by content creator and chartered accountant for a decade, Sarthak Ahuja, who took to his Instagram and shared an insight on the same. The video has garnered over twelve thousand likes so far.
In the clip, Ahuja highlighted that the popular Japanese-origin super tea is gaining ground across Indian farmlands. With the bulk of buyers, like cafes, paying between Rs 3500 and Rs 20000 per kilo, and D2C brands selling 50g packs for up to Rs 1500, matcha is quickly becoming one of the most lucrative crops on the block.
But what's driving this sudden surge? And is it even sustainable? Let's understand.
Why does matcha sell for Rs 20,000 per kilo in India?
Matcha is an expensive tea—usually ₹20,000 per kilogram—because of the intensive labour in cultivation and processing. "While regular green tea is exposed to the sun for its entire lifetime, matcha is shaded from the sun for weeks prior to harvesting, which leads to higher chlorophyll content and a higher amino acid level of L-theanine," says Dr. Shrey Srivastava, Founder of Doctors on Duty (DOD).
According to Dr. Srivastava, "Leaves are hand-harvested, steamed, dried, and finally ground into a fine powder by manual stone mills—a long, labour-intensive process. The careful manufacture produces a high-quality product containing plenty of antioxidants, flavour, and nutrients."
World demand for matcha has gained momentum due to its health advantages, such as heightened metabolism, detoxification, enhanced alertness, and long-lasting energy without the crash of caffeine. It is now broadly incorporated not only in tea but also in lattes, smoothies, and sweets.
Demand for Matcha cultivation has spiked in India
Indian farmers have begun planting matcha owing to increased global demand and its high price in the market. 'Previously cultivated in Japan, matcha is a green tea leaf powder, which is prepared from specially cultivated green tea leaves that are high in antioxidants and health factors. Where favourable climatic conditions exist, such as in Assam, Darjeeling, and Nilgiris, Indian farmers are considering matcha as a value crop," Dr. Bhumesh Tygai, Senior Consultant-Internal Medicine, Sharda Hospital.
Farming advice, better methods of cultivation, and export avenues have also contributed to this phenomenon. "Moreover, the growing consciousness of health and organic food demand domestically and abroad is prompting Indian farmers to diversify and try their hand at new crops such as matcha," he added.
Why have Indian farmers also started cultivating matcha? What's the trigger?
Indian farmers, particularly from states such as Assam, Nilgiris, and a portion of Himachal Pradesh, have felt the monetary value of the crop. Favourable climatic conditions and growing international demand have pushed farmers to opt for the cultivation of matcha as a high-value crop against conventional tea.
"Incentives from the government, application of organic farming, and growing concern about world tea markets have also prompted Indian farmers to experiment with diversification and tap matcha's value segment," says Dr. Srivastava.