The tea export sector in India experienced a slight decline during the period from January to October 2023. According to data from the Tea Board, tea exports dipped by 1.65%, reaching 182.69 million kilograms compared to 185.75 million kilograms in the corresponding period the previous year.
The data from the Tea Board reveals that North India’s tea exports during the first ten months of 2023 witnessed a decline of 4.62%, reaching 110.33 million kilograms, compared to the same period last year. On the other hand, South India saw a 3.25% increase, with exports reaching 72.36 million kilograms during the same period.
The tea export sector faced several challenges during this period, leading to the decline in exports. One of the major factors contributing to the slump was the complications in shipments to Iran due to payment issues. Iran traditionally imports around 20% of India’s tea, but its imports have nearly ceased, impacting the overall export figures. Efforts are underway to explore alternative markets, with the UAE emerging as the second-largest importer after the CIS block.
Despite the decline in exports during January to October 2023, the overall trend in tea production and exports has been positive. In the calendar year 2022, tea exports from India totaled 231.08 million kilograms, indicating a substantial 17.57% rise from the previous year’s figure of 196.54 million kilograms.
RTM Watch’s Take
RTM Watch acknowledges the challenges faced by the tea export sector during January to October 2023, resulting in a decline in exports. The complications in shipments to Iran, a significant market for Indian tea, have had a notable impact. However, the overall positive trend in tea production and exports in recent years indicates the resilience of the industry. Exploring alternative markets and diversifying export destinations will be crucial for the growth and sustainability of India’s tea export sector.
