India has achieved a notable increase in its tea exports, reaching 2.6 lakh tonnes in the last financial year, which generated an export revenue of Rs 6,843.13 crore. This marks an improvement from the previous year’s export figures of 2.41 lakh tonnes and revenue of Rs 6,582.14 crore. Despite this positive trend, experts express concerns about the sustainability of this growth due to challenges in production.
The Indian tea industry, which includes various types such as CTC (Crush, Tear, Curl), orthodox, and green tea, faces mixed prospects. Orthodox tea, renowned for its quality, is particularly well-regarded in international markets. However, meeting export demands has proven challenging, partly due to lower production levels this year. Tea-producing states like Assam, Bengal, Tamil Nadu, and Kerala are experiencing a rise in domestic demand, especially with the festive season approaching. However, North India’s reduced tea production has led to a price increase of approximately Rs 15 per kg in Kerala.
The UAE continues to be a crucial market for Indian tea, importing tea worth Rs 1,088.08 crore and 40,701 tonnes last year. Other significant markets include Iran, the US, and Russia. Nevertheless, exports to some of these countries, including the UAE, have declined compared to the previous year. Factors contributing to this uncertainty include climate change, which has led to reduced production due to extreme heat, and geopolitical issues such as the Red Sea crisis affecting export logistics.
As India’s tea industry navigates these challenges, the future growth of tea exports remains uncertain, with production and geopolitical factors playing a significant role in shaping the market landscape.
