India’s tea export is expected to see an increase this year despite geopolitical tensions, with shipments to Iran and Iraq playing a significant role in this growth. According to the Indian Tea Exporters Association (ITEA), exports are likely to reach 245-260 million kg, compared to 231.69 million kg last year.
One of the key factors driving this growth is the efforts of Indian exporters to expand their presence in overseas markets, despite the challenges posed by geopolitical tensions. The Tea Board’s initiatives to improve the quality of Indian tea and reduce sub-standard products have also contributed to this positive trend.
Exporters have noted a rise in demand for Indian tea in markets such as the US and Russia, in addition to traditional markets like Iran and Iraq. The government’s focus on quality control, particularly in terms of reducing pesticide residues in tea, has helped Indian exporters capitalize on the growing demand in these markets.
While price realizations have been slightly lower this year, especially in lower-priced markets, exporters remain optimistic about the overall growth potential. Markets like Saudi Arabia, Syria, China, and Russia have shown promising growth, indicating a diversification of export destinations for Indian tea.
In terms of tea production, India is expected to see a slight decrease in 2024 compared to 2023, when total production stood at 1,393.66 million kg. Despite this, the outlook for tea exports remains positive, driven by increasing demand from key markets and the efforts of Indian exporters to maintain a strong presence in the global tea trade.
Overall, the resilience and adaptability of the Indian tea industry, combined with strategic initiatives to enhance product quality and expand market reach, bode well for the continued growth of India’s tea exports in the coming years.
