New Delhi: India’s tea exports surged by 23.79 percent year-on-year during the first seven months of 2024, reaching 144.50 million kilograms, compared to 116.73 million kg in the same period in 2023. According to the Tea Board of India, this marks an increase of 27.77 million kilograms. However, despite the higher export volume, the average price per kilogram saw a slight decline. In 2024, the price stood at Rs 256.37 per kg, down from Rs 264.96 per kg in 2023.
Notably, in a move to further bolster the tea sector, the Commerce Ministry has sanctioned a Rs 664.09 crore scheme to support the industry’s development and promotion. This initiative, part of the Tea Development and Promotion Scheme, will span the remainder of the 15th Finance Commission cycle, covering the financial years 2023-24 to 2025-26. The funds will focus on plantation development, quality improvement, market support, research and development, technical interventions, and welfare measures.
Despite being the world's largest producer of black tea and meeting both domestic and export demands, India’s tea industry faces challenges, including sluggish domestic consumption growth, rising food inflation, and the slow recovery of export demand post-Covid. India accounts for about 18 percent of global tea consumption and is the fourth largest tea exporter globally.
In 2023, India produced approximately 1,350 million kilograms of tea, making it the second-largest tea producer worldwide. However, the Tea Board of India and tea producers have raised concerns about the slow growth in domestic demand, which, coupled with inflation, continues to challenge the industry’s expansion.
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