The system and method for producing and dispensing beverages ensures consistent delivery of the beverages by maintaining the associated natural flavours of the ingredients therein. Upon receiving a signal from an input panel co-operating with a controller, predetermined quantity of ingredients of beverage like tea leaves/tea powder, sweetener, condiments and hot/boiling water is introduced through a funnel into a brewing chamber. An agitator connected to a motor is activated to stir the ingredients of the beverage. Brewing continues in the brewing chamber for a predetermined time. When the decoction is ready for being dispensed, a conical hatch is released thereby causing the decoction to flow outside the system into a receiving means through an outlet valve that may be optionally passed through a flipping filtering mechanism.
