Indian Economy News

Several steps have been taken to boost the Indian tea industry, address emerging challenges, and create a global brand

India has taken several steps to boost the output, create a niche brand for Indian tea, and ensure the welfare of the families associated with the tea industry.

With an output of around 1,350 million kilogrammes, India is the world's second-largest producer of black tea and is self-sufficient enough to fulfil its domestic needs as well as its export responsibilities. Around 18% of the world's total tea usage comes from India, which is also the biggest consumer of black tea. In addition to serving a sizable local consumer base, India is the fourth-largest exporter of tea to a variety of countries.

The Indian tea Industry is employing 1.16 million workers directly and an equal number of people are associated with it indirectly.

The growing sector, which accounts for nearly 52% of the total production, is small tea growers. Almost 2.30 lakh small tea growers are currently involved in the supply network. The government of India through the Tea Board has helped in the formation of 352 self-help groups (SHGs), 440 farmer producer organisations (FPO), and 17 farmer producer companies (FPCs). In addition to this, various seminars have been organised, mini tea factories have been set up, a scheme of “assistance of education stipend to the wards of Small Tea Growers” to improve their livelihood and education needs has been devised.

Indian Tea Exports has been fiercely contending on the world market and has succeeded in carving out a niche for itself. Despite numerous geopolitical, geoeconomic, and logistical difficulties, it is anticipated that Indian tea exports will surpass 95% of the US$ 883 million goals set during 2022–23. Additionally, recent exporters' feedback has helped to remove logistical obstacles like the lack of available containers.

Darjeeling tea is produced in the hilly area of the Darjeeling district spread over 87 tea gardens. The Tea Board has proposed additional changes to the "Tea Development and Promotion Scheme, 2021-26," which includes several elements for the overall advantage of the tea business. An online system under the ‘Service plus Portal’ has been put in place to ensure transparency in disbursement and beneficiary identification.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.