India’s tea industry has scripted a remarkable export success story, reaching its highest point in a decade, even as global markets sputtered in the face of geopolitical and economic uncertainty. The milestone, marked by robust growth in both volume and value during 2024, offers a compelling case study in agricultural resilience, strategic branding, and sectoral adaptation. As the bracing aroma of Assam, Darjeeling, and Nilgiri teas infuses cups around the globe, an intricate web of policymakers, farmers—especially small tea growers—and exporters are working in unison to safeguard both the legacy and the future of India’s tea trade.
India’s tea exports in 2024 reached a formidable 255 million kilograms, a leap of 10 percent from the previous year’s tally and the highest mark in ten years. This surge stands as a win not only for India’s agri-exports but also for the millions who depend on the tea industry for livelihood. In a global environment marred by supply chain disruptions, volatile prices, and shifting trade patterns, this performance underscores both the inherent strengths of Indian tea and the pragmatic maneuvers that have allowed exporters to pivot deftly toward opportunity.
The average price realized per kilogram of Indian tea on the world market also rose by 10 percent, a crucial lifeline for producers whiplashed by the adverse weather that scarred the 2023 harvest. It’s a signal that not only did volumes climb, but so too did the prestige and perceived value of India’s teas abroad—a dual achievement rarely synced so closely in commodity markets.
India’s tea exporters were quick to seize the moment, embedding themselves in West Asian markets during Sri Lanka’s downturn and maintaining volumes as conditions stabilized. The list of major destinations also includes the UAE, Iran, Russia, the United States, and the United Kingdom. These relationships are crucial given that India ranks among the top five tea exporters worldwide, accounting for roughly 10 percent of global tea exports.
1. Diversity of Terroir and Award-Winning Varieties:
India’s vast geography gifts the global tea trade storied names: Assam, Darjeeling, and Nilgiri. Each region’s unique topography, climate, and cultivation techniques yield distinct flavor profiles. Darjeeling’s “champagne of teas,” Assam’s robust body, and Nilgiri’s floral brightness have secured enduring demand, particularly from discerning markets in Europe and North America.
2. Predominance of Black Tea and Expanding Offerings:
While black tea dominates—comprising 96 percent of exports—India also supplies regular teas, green tea, herbal infusions, masala chai, and lemon tea. This range has helped Indian exporters tap into evolving consumer trends for health, wellness, and novelty, spreading risk and diversifying revenue streams.
3. Strategic Branding and Promotion:
In recent years, deliberate branding initiatives by the Tea Board of India and allied marketing bodies have bolstered the global identity of Indian teas. These efforts leverage “origin” labs, certifications, and niche marketing (such as single-estate teas or organic lines), aligning with the premiumization movement in global food and beverage sectors.
These collectives have delivered training in quality plucking, modernization through pruning machines and mechanical harvesters, and interventions to manage seasonal crop rushes. Such moves not only uplift productivity but also empower smallholders to fetch higher prices and negotiate collectively in domestic and global markets. The establishment of mini tea factories is another nod to grassroots entrepreneurship, opening up new avenues for the unemployed while reducing the logistical burden on centralized processing facilities.
The increased average export price per kilogram in 2024, therefore, has ramifications beyond plantation owners: it influences household budgets, school attendance, and food security in tea-growing regions. While headline figures capture attention, the subtler narrative is one of sustenance, empowerment, and the struggle for equitable growth among the country’s vast rural population.
The 2024 rebound—fueled by better prices and robust government intervention—is encouraging, but adaptive capacity remains uneven. Large estates and well-networked small growers may find the technical and financial means to cope; others could falter without sustained institutional support.
This ongoing navigation is not without hidden risks. Heavy concentration in a handful of markets introduces a vulnerability to sudden regulatory clampdowns, currency fluctuations, and regional instability. Furthermore, reliance on disruptions in competitor nations for expansion—like the drop in Sri Lanka’s crop—cannot constitute a sustainable long-term strategy.
Major brands and single-origin estates have diligently promoted specialty teas and certifications (organic, fair trade, GI tags for Assam and Darjeeling) as emblems of quality. For Indian exporters, the challenge now is to embed these values at every link in the supply chain to guard against commoditization—a threat that can erode margins and undercut rural livelihoods.
A technology-forward tea sector is inevitable, but policymakers must ensure that the march toward efficiency does not come at the expense of employment or authenticity.
The extent to which these new players can access credit, technology, and global market intelligence will likely determine whether India’s tea sector can sustain its export prowess beyond episodic booms tied to external disruption.
Indian tea’s present export fortunes also rest precariously on pricing power in select markets. If these buyers diversify—or if geopolitical realignments favor competitors—India could face a sharp correction. The shift from bulk to value-added and branded product lines must accelerate, or India risks being left behind by nimbler rivals.
If the sector can embrace these challenges—as it has done in the past year—then the story of Indian tea is poised to remain a flavorful and inspiring one for decades to come. The world’s growing taste for Indian teas is both a triumph and a responsibility, steeped as it is in the livelihoods of millions and the world’s shared heritage of flavor and tradition.
Source: www.lokmattimes.com India’s tea exports surge to 10-year high - www.lokmattimes.com
India’s tea exports in 2024 reached a formidable 255 million kilograms, a leap of 10 percent from the previous year’s tally and the highest mark in ten years. This surge stands as a win not only for India’s agri-exports but also for the millions who depend on the tea industry for livelihood. In a global environment marred by supply chain disruptions, volatile prices, and shifting trade patterns, this performance underscores both the inherent strengths of Indian tea and the pragmatic maneuvers that have allowed exporters to pivot deftly toward opportunity.The average price realized per kilogram of Indian tea on the world market also rose by 10 percent, a crucial lifeline for producers whiplashed by the adverse weather that scarred the 2023 harvest. It’s a signal that not only did volumes climb, but so too did the prestige and perceived value of India’s teas abroad—a dual achievement rarely synced so closely in commodity markets.
The Shifting Map of Tea Exports
A closer look at export destinations paints a nuanced portrait of market adaptation. While India continues to send tea to over 25 countries, the standout story this year has been the staggering growth of exports to Iraq, now accounting for a fifth of India’s tea sales abroad. Exporters anticipate consignments to the country could rise further to 40-50 million kilograms within the fiscal year. Behind these numbers lies the context of supply constraints in rival producers like Sri Lanka, whose lower output opened doors in the West Asian market—a classic example of opportunity being carved out of a competitor’s misfortune.India’s tea exporters were quick to seize the moment, embedding themselves in West Asian markets during Sri Lanka’s downturn and maintaining volumes as conditions stabilized. The list of major destinations also includes the UAE, Iran, Russia, the United States, and the United Kingdom. These relationships are crucial given that India ranks among the top five tea exporters worldwide, accounting for roughly 10 percent of global tea exports.
Strengths That Steep Success
Several distinctive strengths underpin India’s tea export achievement. These spill across the spectrum from biodiversity in production regions to marketing initiatives targeting brand identity.1. Diversity of Terroir and Award-Winning Varieties:
India’s vast geography gifts the global tea trade storied names: Assam, Darjeeling, and Nilgiri. Each region’s unique topography, climate, and cultivation techniques yield distinct flavor profiles. Darjeeling’s “champagne of teas,” Assam’s robust body, and Nilgiri’s floral brightness have secured enduring demand, particularly from discerning markets in Europe and North America.
2. Predominance of Black Tea and Expanding Offerings:
While black tea dominates—comprising 96 percent of exports—India also supplies regular teas, green tea, herbal infusions, masala chai, and lemon tea. This range has helped Indian exporters tap into evolving consumer trends for health, wellness, and novelty, spreading risk and diversifying revenue streams.
3. Strategic Branding and Promotion:
In recent years, deliberate branding initiatives by the Tea Board of India and allied marketing bodies have bolstered the global identity of Indian teas. These efforts leverage “origin” labs, certifications, and niche marketing (such as single-estate teas or organic lines), aligning with the premiumization movement in global food and beverage sectors.
Empowering the Backbone: Small Tea Growers and Sectoral Reforms
A less glamorous but vital engine of export growth is the burgeoning contribution of small tea growers (STGs), now responsible for 52 percent of national output. Numbering more than 230,000, these growers operate at the intersection of tradition and innovation. Recognizing their role, the government has rolled out targeted support structures including Self Help Groups (SHGs), Farmer Producer Organisations (FPOs), and Farmer Producer Companies (FPCs).These collectives have delivered training in quality plucking, modernization through pruning machines and mechanical harvesters, and interventions to manage seasonal crop rushes. Such moves not only uplift productivity but also empower smallholders to fetch higher prices and negotiate collectively in domestic and global markets. The establishment of mini tea factories is another nod to grassroots entrepreneurship, opening up new avenues for the unemployed while reducing the logistical burden on centralized processing facilities.
The Social Tapestry: Tea as a Livelihood Engine
The economic significance of tea goes far beyond export revenues. Directly employing 1.16 million workers—many of whom are women—India’s tea industry supports a comparable number of indirect jobs in transport, packaging, logistics, and ancillary services. This social footprint means that every oscillation in global prices or government policy can be felt by entire rural communities.The increased average export price per kilogram in 2024, therefore, has ramifications beyond plantation owners: it influences household budgets, school attendance, and food security in tea-growing regions. While headline figures capture attention, the subtler narrative is one of sustenance, empowerment, and the struggle for equitable growth among the country’s vast rural population.
Weathering the Storms: Climate Risk and Export Resilience
Despite the celebration around export records, the sector is not impervious to risk. Inclement weather during 2023 served as a stark reminder of the vulnerability of tea to climate-related shocks. Unpredictable rainfall, rising temperatures, and pest infestations can wipe out years of agronomic progress almost overnight. For exporters dependent on consistent quality and volume, these risks translate into market volatility, contractual uncertainties, and sometimes reputational damage if quality dips.The 2024 rebound—fueled by better prices and robust government intervention—is encouraging, but adaptive capacity remains uneven. Large estates and well-networked small growers may find the technical and financial means to cope; others could falter without sustained institutional support.
The Geopolitical Context: Navigating Uncertainties
India’s tea export renaissance has occurred against a backdrop of shifting global alliances and economic realignments. Geopolitical unrest in West Asia, the aftermath of the global pandemic, and ongoing tensions in areas like Russia have disrupted traditional trade flows and logistics. Yet, Indian exporters have proven adept at rerouting shipments, renegotiating payment mechanisms—sometimes bartering tea for other goods in markets like Iran—and capitalizing on windows of opportunity.This ongoing navigation is not without hidden risks. Heavy concentration in a handful of markets introduces a vulnerability to sudden regulatory clampdowns, currency fluctuations, and regional instability. Furthermore, reliance on disruptions in competitor nations for expansion—like the drop in Sri Lanka’s crop—cannot constitute a sustainable long-term strategy.
Branding, Premiumization, and the Quest for Value
Beyond raw export numbers lies the subtler art of building brand equity. The rise in average price per kilogram suggests that Indian tea is climbing the value ladder in international perceptions. This trend is both an outcome and a driver of broader movements: the global fascination with provenance, “authenticity,” and wellness.Major brands and single-origin estates have diligently promoted specialty teas and certifications (organic, fair trade, GI tags for Assam and Darjeeling) as emblems of quality. For Indian exporters, the challenge now is to embed these values at every link in the supply chain to guard against commoditization—a threat that can erode margins and undercut rural livelihoods.
Modernization, Mechanization, and Technological Shifts
One of the most transformative reforms in recent years is the gradual mechanization of tea harvesting and processing. The government’s assistance in distributing pruning machines and harvesters to smallholders is beginning to pay dividends in yield and efficiency. Mechanization, however, carries its own set of questions. Will it displace the underemployed rural workforce that traditionally forms the backbone of plucking and sorting? Can technological adoption be balanced with the artisanal qualities—such as hand-plucked Darjeeling tips—that drive demand for premium teas?A technology-forward tea sector is inevitable, but policymakers must ensure that the march toward efficiency does not come at the expense of employment or authenticity.
Nurturing the Next Generation of Tea Entrepreneurs
The expansion of mini tea factories—and the incentives for unemployed youth to enter tea entrepreneurship—points to a nascent but exciting dynamism at the grassroots. These micro-factories, potentially scalable and adaptable to local conditions, could democratize value addition in the sector. They bring with them not just jobs, but innovation in processing, blending, and direct-to-consumer marketing.The extent to which these new players can access credit, technology, and global market intelligence will likely determine whether India’s tea sector can sustain its export prowess beyond episodic booms tied to external disruption.
Risks and the Path Forward
While 2024 marks a proud moment, hidden vulnerabilities lie beneath the surface. Climate volatility isn’t going away; in fact, it will likely intensify, putting more pressure on adaptation efforts and driving up costs. The heavy reliance on black tea exports (96 percent of the basket) makes the industry susceptible if global tastes pivot even marginally toward green, herbal, or specialty infusions.Indian tea’s present export fortunes also rest precariously on pricing power in select markets. If these buyers diversify—or if geopolitical realignments favor competitors—India could face a sharp correction. The shift from bulk to value-added and branded product lines must accelerate, or India risks being left behind by nimbler rivals.
Conclusion: A Steaming Cup of Opportunities and Challenges
India’s tea export achievement in 2024 is more than a tale of numbers—it is a tribute to the grit of growers, the pragmatism of exporters, and the foresight of policymakers who have shepherded the sector through unpredictability. The path has not been linear, nor are future prospects assured. As global markets evolve and external shocks become more frequent, India’s tea industry will need to double down on innovation, branding, and climate resilience.If the sector can embrace these challenges—as it has done in the past year—then the story of Indian tea is poised to remain a flavorful and inspiring one for decades to come. The world’s growing taste for Indian teas is both a triumph and a responsibility, steeped as it is in the livelihoods of millions and the world’s shared heritage of flavor and tradition.
Source: www.lokmattimes.com India’s tea exports surge to 10-year high - www.lokmattimes.com
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