India’s tea exports rise nearly 3% in FY 2024-25, driven by strong global demand

India’s tea exports rose by 2.85% in the 2024-25 financial year, reflecting robust international demand and consistent output from key producing regions. According to data released by the Tea Board of India, total export volumes increased from approximately 2,50,730 tonnes in 2023–24 to 2,57,880 tonnes in the current fiscal.

The increase was largely driven by higher shipments from North India, which recorded an 8.15% rise in exports. Volumes rose from 1,49,050 tonnes to 1,61,200 tonnes year-on-year. Meanwhile, South India saw a decline, with exports dropping by 4.92% to 96,680 tonnes from 1,01,680 tonnes in the previous year.

Export earnings saw a notable improvement. The average realisation per kilogram increased to ₹290.97, up 12.65% from ₹258.30 in the preceding year, which was due to improved market price and greater demand for quality tea.

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Several international markets played a key role in driving this growth. Russia continued to be one of the top importers of Indian orthodox tea, maintaining trade ties despite global geopolitical challenges. Iran remained a significant buyer, particularly of North Indian orthodox varieties, although trade volumes have occasionally been impacted by payment and currency constraints.

The United Arab Emirates served as both a direct consumer and a re-export hub, while the United Kingdom remained a steady market, particularly for Assam and Darjeeling teas. The United States continued its upward trend as a growing destination for premium and speciality teas. China, though a smaller market in terms of volume, has shown increased interest in Indian black teas.

Other markets included Saudi Arabia, Egypt, Germany and Kazakhstan, with many of these destinations showing growing interest in health-centric and speciality blends, segments where Indian teas are gaining traction.

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For the calendar year January to December 2024, tea exports reached 2,56,170 tonnes, marking a 10.57% increase over the same period in 2023. North India accounted for 1,55,490 tonnes during this period, up by 10.28%, while South India contributed 1,00,680 tonnes.

The tea industry remains optimistic about the future, buoyed by supportive government measures, ongoing marketing efforts in new and existing markets, and a renewed focus on value-added products and GI-tagged teas. While challenges such as climate variability, input costs and global trade uncertainties persist, the overall outlook for Indian tea exports remains strong as the country continues to solidify its position as a major global supplier.

(Edited by : Jerome Anthony)