Indian Tea Industry: A Steaming Success Story Of Production, Exports, And Government Support
Soaring Indian Tea Industry: Production, Exports, and Government Initiatives. India's thriving tea industry, globally renowned for its premium quality, has experienced significant growth in production and exports. With 80% of the tea produced in India being consumed domestically, the nation ranks among the largest tea consumers worldwide. In 2020, India's total tea production reached 1,257.52 million kg, and 1,283 million kg in the fiscal year 2020-21.
India's tea exports, valued at around US$ 687.9 million in 2021, are dominated by black tea, accounting for 96% of total exports. Major importers of Indian tea include Russia, Iran, UAE, USA, UK, Germany, and China. During 2021-22, these countries imported large quantities of tea from India, contributing to a combined total export value of US$ 277.3 million.
The Tea Board of India and various government initiatives support the Indian tea industry. The Promotion for Packaged Tea of Indian Origin scheme aids Indian exporters in marketing teas of Indian origin in overseas markets. The Tea Development and Promotion Scheme, launched in November 2021, aims to enhance productivity and quality in Indian tea production. The Tea Board of India plays a crucial role in the development of the Indian tea industry, undertaking direct promotional activities and supporting research and development.
The Indian tea industry continues to flourish with steady growth in production and exports, backed by government initiatives and the Tea Board of India. Indian tea's unique flavors and exceptional quality have made a mark in the international market, delighting tea enthusiasts across the globe.
India holds the title of the world's second-largest tea producer, renowned for its premium quality tea, due to unique geographical indications, significant investments in processing facilities, continuous innovation, product diversification, and strategic market expansion. As of 2018, tea cultivation in India spanned 6.37 lakh hectares. With 80% of the tea produced in the country consumed domestically, India ranks among the largest tea consumers globally. In 2020, India's total tea production reached 1,257.52 million kg, and 1,283 million kg in the fiscal year 2020-21.Â
From January-September 2022, India's tea production stood at 984.67 million kg.
Northern India, including Assam and West Bengal, contributes approximately 83% of the country's annual tea production in 2021-22. Southern India, primarily Tamil Nadu, Kerala, and Karnataka, accounts for the remaining 17%. This article delves into the flourishing Indian tea industry, exploring its production, exports, key markets, and the government's role in promoting this beloved beverage.
Indian Tea Industry: A Steaming Success Story Of Production, Exports, And Government Support
Export Trends - A Total Product Perspective
In 2021, India's tea exports were valued at around US$ 687.9 million. Renowned worldwide, Indian Assam, Darjeeling, and Nilgiri tea are highly sought-after. Black tea, accounting for 96% of total exports, dominates India's tea exports.Â
Other exported tea varieties include regular tea, green tea, herbal tea, masala tea, and lemon tea, with black tea, regular tea, and green tea constituting approximately 80%, 16%, and 3.5% of India's total tea exports, respectively.
India exported 201 million kg of tea during 2021-22, a 9% increase from the same period in 2021, with the January-April 2022 exports valued at US$ 215 million. In terms of quantity, India's tea exports from January-December 2021 totaled 197 million kg, with a total export value of US$ 718 million (a 1.7% increase from 2020). Between April-November 2021, India exported tea worth US$ 458.88 million.Â
The export price per kilogram has steadily risen over the years. During 2021-22, the unit price of tea reached US$ 3.62 per kg, compared to US$ 3.52 in the previous year, representing a 17% increase in the price per unit of tea exported from India since 2018-19.
Between April 2022-June 2022, India's total tea exports reached 65.19 million kgs, valued at US$ 236.36 million, a rise of US$ 19.77 million compared to the same period the previous year.
