The Indian tea industry faced challenges in 2024 due to adverse climatic conditions affecting tea production in both North and South India. The production of tea in the country fell by 120-130 million kg, with drought, unseasonal rains, and pest attacks being cited as the main reasons for the decline. Despite the lower production, Indian tea exports saw a 23% increase in 2024, driven by higher purchases from countries like Iraq.
South Indian tea made a significant contribution to the increase in exports, with shipments from the region increasing by 33% compared to the previous year. This growth in exports from South India can be attributed to better competitiveness in the global market and increased demand from countries like Iraq, Russia, UAE, and Germany.
The rise in exports also had a positive impact on tea prices, with average prices in South India increasing by 13.2% and All-India prices rising by 18.3%. The increased demand for Indian teas led to a boost in prices, especially for orthodox teas which saw a significant price rise in both North and South India.
Looking ahead, the outlook for Indian tea exports in 2025 is promising, with expectations of sustained price levels due to lower production and increased demand for sustainable and compliant teas. The industry will need to focus on building a strong brand identity for Indian tea to regain its legacy and continue to thrive in the global market.
Overall, despite the challenges faced in 2024, the Indian tea industry has shown resilience and adaptability in the face of adversity, with South Indian tea playing a significant role in driving exports and prices in the market.
