Exports of tea from India stood at US$ 818 million in FY23.
Source: Directorate General of Commercial Intelligence and Statistics (DGCIS)
Last updated: Nov, 2023
Introduction
India is the second-largest producer of tea globally. Indian tea is one of the finest in the world owing to strong geographical indications, heavy investment in tea processing units, continuous innovation, augmented product mix, and strategic market expansion. As of a 2018 survey, a total of 6.37 lakh hectares of area was cultivated in India for tea production. India is also among the world's top tea-consuming countries, with 80% of the tea produced in the country consumed by the domestic population. In May 2022, India’s tea production stood at 127.11 million kgs, and it was at 91.77 million kg in April 2022. During 2022-23, India’s tea production stood at 1374.97 million kg. The expected tea production in March 2023 stood at 79.61 million kgs.
The Assam Valley and Cachar are the two tea-producing regions in Assam. In West Bengal, Dooars, Terai and Darjeeling are the three major tea producer regions. The southern part of India produces about 17% of the country's total production with the major producing states being Tamil Nadu, Kerala, and Karnataka.
Export Trend – Total Product
India is among the top 5 tea exporters in the world making about 10% of the total exports. From April-October 2022-23 (provisional), the total value of tea exports from India stood at US$ 474.22 million. Indian Assam, Darjeeling, and Nilgiri tea are considered one of the finest in the world. The majority of the tea exported out of India is black tea which makes up about 96% of the total exports. The types of tea exported through India are black tea, regular tea, green tea, herbal tea, masala tea and lemon tea. Out of these, black tea, regular tea, and green tea make up approximately 80%, 16% and 3.5% of the total tea exported from India.
India's total tea exports during 2021-22 in quantity were 201 million kg. The total exports during January-April 2022 were 65 million kg and were valued at US$ 215 million, a 9% increase from the same period in 2021. During the financial year 2021-22 period (between April-November 2021), India exported tea worth US$ 458.88 million. India's export price per kilogram has seen a steady increase over the years. During 2021-22, the unit price of tea was US$ 3.62 per kg. This, in the previous year, was US$ 3.52 per kg. From 2018-19, the price per unit of tea exported out of India has increased by 17% in 2021-22. This has allowed the country to have better profitability out of the exported goods.
From April 2022-June 2022, India’s total tea exports stood at 65.19 million kgs, this was valued at US$ 236.36 million, a rise of US$ 19.77 million as compared to the same period the previous year.
Export by Country
India exports tea to more than 25 countries throughout the world. Russia, Iran, UAE, USA, the UK, Germany, and China are some of the major importers of tea from India. During 2022-23* Russia, UK and UAE imported 26.4 million kg, 6.99 million kgs and 22.79 million kg of tea from India. The share of Indian exports to the CIS nations during that period was 25.43% (34.12 million kgs) of the total exports. Iran, UAE, and the Russia are among India's top tea export destinations. During 2022-23, the three countries imported 12 million kgs, 22.79 million kgs and 26.04 million kgs respectively from tea from India. The value of total exports to these countries combined was US$ 191.41 million during the same period.
During 2022-23*, the exports to Germany, the USA, UAE, and UK rose to 4%, 6%, 17%, and 5% respectively. Some of India's other tea export destinations are Poland, Canada, Saudi Arabia, Egypt, Afghanistan, Bangladesh, China, Singapore, Sri Lanka, Kenya, Japan, Pakistan, and Australia, etc.
Government Initiatives
To help the Indian exporters to market tea of Indian origin in overseas markets on a sustained basis, the Tea Board of India started a scheme: Promotion for packaged tea of Indian origin. The scheme assists in promotional campaigns - up to 25% of the cost reimbursement, display in international departmental stores, product literature and website development, and inspection charges reimbursement of up to 25% of the charges.
The Tea Board also provides subsidies to domestic exporters to participate in international fairs and exhibitions. The aim is to provide a platform for exporters to showcase their products at international events for promotion.
Tea Development and Promotion Scheme
This scheme was launched in November 2021 by the Tea Board of India for the period of 2021-26. The objective of this scheme is to enhance the productivity and quality of tea production in India. There are seven important components to this scheme,
Plantation development of small tea farmers
Creation of sector specific actions plan for North East India
Supporting the tea producers and trader in market promotion activities
Worker's welfare
Research and development activities
Regulatory reforms
Establishment expenses
Governing Body – Tea Board of India
The Tea Board of India was set up in 1953 for the development of the tea industry in India. It started functioning in 1954. The board is located in Kolkata and has 17 offices across India. Being the regulatory body, the board exerts control over the producers, manufacturers, exporters, tea brokers, auction organisers and warehouse keepers through various control orders notified under Tea Act. The responsibilities of the board are increasing production and productivity, improving the quality of tea, market promotion, and welfare measures for plantation workers, and supporting research and development.
Besides the development and regulatory framework, the Tea Board of India also undertakes direct promotional activities, including organizing joint participation in international fairs and exhibitions, arranging buyer and seller meets, and sending & hosting trade delegations. It also conducts market surveys, analyses, identifies, tracks consumer behaviour, and provides relevant and accurate information to importers and exporters.
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