Tea exports from the country remained almost stagnant at 231.691 million kilograms during the calendar year 2023, according to the latest data from the Tea Board.
This slight increase from the previous year's figure of 231.08 million kilograms reflects the industry's struggle to maintain growth in the face of significant market challenges.
A spokesperson for the Indian Tea Association (ITA), a leading planters' body, attributed the stagnation to the loss of the Iranian market. Iran, once a major importer of Indian tea, significantly reduced its purchases due to payment problems stemming from US sanctions.
In 2023, Iran's imports of Indian tea plummeted to around 5.16 million kilograms, a dramatic drop from 54 million kilograms in 2019.
Further compounding the issue, shipments to Russia, the largest buyer within the CIS bloc of nations, were adversely affected by the ongoing conflict with Ukraine. This disruption in one of India's key markets has added to the woes of the tea export sector.
Region-wise, exports from North India totaled 141 million kilograms in 2023, while South Indian tea exports stood at 90.69 million kilograms. Despite these regional figures, the overall export volume has remained relatively unchanged, highlighting the broader challenges faced by the industry.
The ITA spokesperson emphasized the need for the industry to explore new markets and strategies to counteract the loss of traditional buyers and navigate the complex global trade environment.
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