Indian Tea Industry: A Steaming Success Story Of Production, Exports, And Government Support
India holds the title of the world's second-largest tea producer, renowned for its premium quality tea, due to unique geographical indications, significant investments in processing facilities, continuous innovation, product diversification, and strategic market expansion. As of 2018, tea cultivation in India spanned 6.37 lakh hectares. With 80% of the tea produced in the country consumed domestically, India ranks among the largest tea consumers globally. In 2020, India's total tea production reached 1,257.52 million kg, and 1,283 million kg in the fiscal year 2020-21.
From January-September 2022, India's tea production stood at 984.67 million kg.
Northern India, including Assam and West Bengal, contributes approximately 83% of the country's annual tea production in 2021-22. Southern India, primarily Tamil Nadu, Kerala, and Karnataka, accounts for the remaining 17%. This article delves into the flourishing Indian tea industry, exploring its production, exports, key markets, and the government's role in promoting this beloved beverage.
Indian Tea Industry: A Steaming Success Story Of Production, Exports, And Government Support
Export Trends - A Total Product Perspective
In 2021, India's tea exports were valued at around US$ 687.9 million. Renowned worldwide, Indian Assam, Darjeeling, and Nilgiri tea are highly sought-after. Black tea, accounting for 96% of total exports, dominates India's tea exports.
Other exported tea varieties include regular tea, green tea, herbal tea, masala tea, and lemon tea, with black tea, regular tea, and green tea constituting approximately 80%, 16%, and 3.5% of India's total tea exports, respectively.
India exported 201 million kg of tea during 2021-22, a 9% increase from the same period in 2021, with the January-April 2022 exports valued at US$ 215 million. In terms of quantity, India's tea exports from January-December 2021 totaled 197 million kg, with a total export value of US$ 718 million (a 1.7% increase from 2020). Between April-November 2021, India exported tea worth US$ 458.88 million.
The export price per kilogram has steadily risen over the years. During 2021-22, the unit price of tea reached US$ 3.62 per kg, compared to US$ 3.52 in the previous year, representing a 17% increase in the price per unit of tea exported from India since 2018-19.
Between April 2022-June 2022, India's total tea exports reached 65.19 million kgs, valued at US$ 236.36 million, a rise of US$ 19.77 million compared to the same period the previous year.
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