The demand for Indian tea is rising both within the country and in international markets, prompting the central government to increase efforts to boost tea exports. Despite significant domestic consumption, the government aims to expand its reach globally while enhancing the quality and value of Indian tea.
At the 131st annual conference of the United Planters Association of South India, M. Muthukumar, Executive Director of the Tea Board, highlighted India’s ambitious goal to export 400 million kilograms of tea by 2047, with a focus on value addition. He stressed the importance of exploring new global markets while maintaining stable export levels.
Current Tea Export and Production Scenario
India has long been one of the top producers of tea, especially black tea, accounting for around 20% of global tea production. However, tea exports from India have remained relatively steady for decades, with an average of 200 million kilograms exported annually. In 1950, tea exports stood at 201 million kilograms, and by 2023, they had only increased slightly to 232 million kilograms. In contrast, domestic tea production has seen a significant surge, rising from 278 million kilograms in 1950 to an impressive 1,394 million kilograms in 2023.
One of the key reasons for the slow growth in exports is the sharp increase in domestic tea consumption, which has grown from 77 million kilograms in 1950 to a massive 1,162 million kilograms in 2023. This growing domestic demand has created challenges for maintaining stable export volumes, as much of the production is consumed locally.
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Tea Exports Challenges and Opportunities
To meet its ambitious export target of 400 million kilograms by 2047, the Indian tea industry will need to ramp up production while balancing the needs of the domestic market. Muthukumar emphasized that achieving this goal requires investment in research and development, improving quality standards, and promoting value addition to increase export value. India currently holds the position of the fourth-largest tea exporter, with a 12% share of the global market. To maintain and grow its presence internationally, the country must strengthen its infrastructure and adopt modern farming and production techniques.
Key Government Initiatives for 2024
In response to the rising demand and export challenges, the government has outlined several initiatives to revitalize the Indian tea industry. Some of the key initiatives planned for 2024 include:
Promoting Organic Farming
The government aims to reduce the use of chemicals in tea cultivation and promote organic farming practices. This shift towards more sustainable and eco-friendly production will not only improve the quality of Indian tea but also align with global trends in health-conscious consumer markets.
Boosting Domestic Consumption
With a rapidly growing domestic market, the government plans to launch promotional campaigns to further increase tea consumption in India. These campaigns will focus on creating awareness about the health benefits of tea, as well as promoting new varieties and flavours to cater to different consumer preferences.
Encouraging Mechanization in Farming
To reduce production costs and increase efficiency, the government will promote mechanization in tea farming, particularly in the organized sector. This will help tea growers optimize resources, increase productivity, and ultimately meet both domestic and international demand.
The government is also focused on creating world-class integrated tea parks that will serve as hubs for tea production, processing, and export. These parks will help streamline operations, enhance the quality of tea, and reduce the time it takes to bring products to market.
For more updates and information on the tea industry, stay connected with the Tea Board or Stay tuned with us on our WhatsApp channel for more real time updates on various agriculture related schemes and innovative cultivation methods aimed at supporting our hardworking farmers.
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