Tea Industry and Exports in India

Introduction

Indian tea is among the finest in the world owing to strong geographical indications, heavy investments in tea processing units, continuous innovation, augmented product mix and strategic market expansion. The main tea-growing regions are in Northeast India (including Assam) and in north Bengal (Darjeeling district and the Dooars region). Tea is also grown on a large scale in the Nilgiris in south India. India is one of the world’s largest consumers of tea, with about three-fourths of the country’s total produce consumed locally.

KEY MARKETS AND EXPORT DESTINATIONS

• Total Tea exports stood at US$ 830.90 million in 2018-19 and reached US$ 535.13 million in 2019-20 (till November 2019).
• Between April-November 2019, major importers of Indian tea were Iran (US$ 131.77 million), CIS (US$ 90.29), USA (US$ 37.35 million), UK (US$ 30.97 million), UAE (US$ 25.30 million) and China (US$ 21.70 million).
• India stands fourth in terms of tea exports after Kenya (including neighbouring African countries), China and Sri Lanka respectively.
• As of 2018, India was the second largest producer in the world with production of 1,338 million kg and during January-December 2019*, estimated production stood at 1389.70 million kg.
• The country is home to a wide variety of teas, including CTC tea, orthodox tea, green tea and organic tea. Unlike many other teas producing and exporting nations, India has a manufacturing base for both CTC and orthodox tea, in addition to green tea.
• India offers high-quality specialty teas, such as Darjeeling, Assam Orthodox and the high-range Nigiri, which have a distinctive aroma, strength, colour and flavour.

TEA BOARD OF INDIA

The Board was set up under the Tea Act, 1953, and it started functioning in April 1954. Its headquarters are in Kolkata, with 17 offices across India. In addition to developmental and regulatory functions, the Tea Board of India undertakes direct promotional activities, which include organising joint participation in international fairs and exhibitions, arranging buyer-seller meets and sending and hosting trade delegations. The Board also undertakes various market development activities such as market surveys, market analysis, tracking of consumer behaviour and dissemination of relevant information to exporters/importers.

Tea exports from India stood at US$ 830.90 million in 2018-19 and reached US$ 535.13 million in 2019-20 (till November 2019).