Despite geopolitical tensions, Indian tea exports are likely to be higher this year than last year, mainly due to increased exports to Iran and Iraq.
The US and Russian markets also witnessed increased demand for Indian tea. Exports of the brew could reach between 245 and 260 million kg (mkg) this year, compared to 231.69 million kg last year, according to exporters’ associations. In 2022, shipments to overseas markets amounted to 231.08 mkg.
“This year, exports will increase substantially compared to last year. We expect this to grow to 260 mkg. We have seen export growth in all overseas markets, especially in Iran and Iraq,” said Anshuman Kanoria, chairman, Indian Tea Exporters Association (ITEA). business line.
Taking risks
“Despite war and geopolitical tensions, our exporters have made efforts and taken risks to grow exports. The Tea Board’s approach to improving tea quality and reducing substandard tea has also contributed to export growth,” Kanoria said.
According to exporters, the government’s push to control pesticides in tea to improve its quality is helping them increase exports to overseas markets, especially Iran and Iraq.
Kanoria said price realization in overseas markets this year has been slightly lower than last year as the markets where exports have increased are mainly low-priced markets. “However, the price realization was appropriate,” said the ITEA chairman.
Iraq buys more CTC
“We are succeeding in retaining markets such as Saudi Arabia and Syria. We export to China, but there is much more potential,” he said.
Dipak Shah, president of South India Tea Exporters Association, said exports this year are likely to be around 245-250 mkg.
“This year the markets were good as far as Iran and Iraq are concerned. Russia was quite good this time and so was the US,” Shah said.
“Iran is an orthodox tea market. The Russian market is both Orthodox and CTC. And Iraq left late and bought more CTC tea. South India has been a major exporter to Iraq since this year,” Shah said.
However, Indian tea production is likely to see a decline in 2024 compared to 2023. Last year, total production was 1,393.66 mkg.
