Tea Industry and Exports in India

Introduction

Indian tea is among 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. The main tea-growing regions are in the Northeast (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 export stood at US$ 830.90 million in FY19 and US$ 826.47 million in FY20.
• India stands fourth in terms of tea export after Kenya (including neighbouring African countries), China and Sri Lanka.
• As of 2019, India was the second largest tea producer in the world with production of 1,339.70 million kgs. During January–February 2020*, estimated production of tea stood at 30.54 million kgs.
• The total tea export was US$ 281.39 million in April–August 2020 and for August 2020 it was US$ 69.44 million**.
• 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 Nilgiris, which have a distinctive aroma, strength, colour and flavour.

Tea Board of India

Tea Board of India was set up under the Tea Act, 1953, and it started functioning in April 1954. It is headquartered in Kolkata and has 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. It also undertakes various market development activities such as market surveys, market analysis, tracking of consumer behaviour and dissemination of relevant information to exporters/importers.

Source:

• Directorate General of Commercial Intelligence and Statistics
• EXIM Analytics
• Tea Board India

Note-

• *- estimate

**-Provisional Value