India’s tea export likely to be higher this year despite geopolitical tensions

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Despite geopolitical tensions, India’s tea export will likely to be higher this year compared to last year mainly due to increase in shipments to Iran and Iraq.

The US and Russian markets also witnessed higher demand for Indian tea. According to the exporters’ associations, this year’s export of the brew could be in the range of 245-260 million kg (mkg) compared with 231.69 million kgs last year. In 2022, shipments to the overseas markets stood at 231.08 mkg.

“This year exports will increase substantially compared to last year. We are expecting it to grow to 260 mkg. We have seen export growth in all overseas markets, especially Iran and Iraq,” Indian Tea Exporters Association (ITEA) chairman Anshuman Kanoria told businessline.

Taking risks

“Despite war and geopolitical tensions, our exporters have taken efforts and risks to grow the shipments. The Tea Board’s approach to improve tea quality and reduce sub-standard tea has also helped export growth,” Kanoria pointed out.

According to exporters, the government’s drive to check pesticides in tea to improve its quality is helping them grow shipments to overseas markets, especially Iran and Iraq.

Kanoria said price realisation in the overseas markets has been a bit lower this year compared to last year as the markets where the exports have increased are mainly low-priced markets. “However, price realisation has been appropriate,” said the ITEA chairman.

Iraq buys more CTC

“We are managing to hold on to the markets like Saudi Arabia and Syria. We are exporting to China, but there potential is much more,” he said.

Dipak Shah, Chairman, South India Tea Exporters Association, said export for this year is likely to be around 245-250 mkg.

“This year markets have been good as far as Iran and Iraq are concerned. Russia has been quite good this time, and also the US,” Shah said.

“Iran is a orthodox tea market. The Russian market is both orthodox and CTC. And, Iraq off late has been buying more CTC tea. South India has been a major exporter to Iraq as of this year,” Shah said.

However, India’s tea production for 2024 is likely to witness a fall compared to 2023. Last year, total production stood at 1,393.66 mkg.