India Tea Exports

India is among the world’s leading tea-producing and exporting nations. Tea, particularly the black tea variety, constitutes one of the country’s most important agricultural exports and a vital source of foreign exchange. The Indian tea industry, rooted in states such as Assam, West Bengal, Tamil Nadu, and Kerala, supports millions of livelihoods and plays a pivotal role in global tea supply chains.

Overview and Production Context

India’s diverse climatic and geographic conditions make it one of the few countries capable of producing multiple types of tea — CTC (Crush, Tear, Curl), orthodox, green, and speciality teas. While domestic consumption accounts for a major portion of total production, exports continue to hold strategic importance for the industry.

Recent Export Trends

In recent years, India’s tea exports have shown steady growth, both in volume and in value. By 2024, total exports were recorded at approximately 254 to 258 million kilograms, reflecting a near 10% increase over the previous year. The corresponding export value also rose significantly, driven by higher unit realisations due to the export of premium-grade teas and strong global demand.
During the first quarter of 2025, India exported nearly 86 million kilograms of tea valued at over ₹2,500 crore, with an average price exceeding ₹290 per kilogram. This represented an increase of more than 18% in realisation compared to the same period of the preceding year.
North Indian teas, particularly from Assam and West Bengal, contributed around 60% of total export volume, whereas South Indian teas from Tamil Nadu and Kerala accounted for nearly 40%. In terms of value, North India’s share was higher due to the superior global demand for Assam and Darjeeling teas.

Major Export Destinations

India exports tea to more than 140 countries across the globe. The leading destinations include:

• United Arab Emirates (UAE) – one of the largest importers, serving also as a re-export hub for other markets.
• Russia and CIS countries – traditionally strong buyers of Indian black tea.
• United Kingdom and the United States – key destinations for orthodox and speciality teas.
• Iraq and Iran – important Middle Eastern markets, though trade sometimes fluctuates due to sanctions and payment-related issues.

Black tea remains the dominant export category, accounting for around 95–96% of total tea exports, while green and speciality teas are gaining attention in niche markets.

Regional Contribution and Characteristics

1. North India (Assam, West Bengal, and the Dooars-Terai regions):
   • Produces high-quality CTC and orthodox teas.
   • Accounts for the majority of export earnings.
   • Assam tea, known for its strength and flavour, is particularly popular in global blending markets.
2. South India (Tamil Nadu, Kerala, Karnataka):
   • Produces lighter teas suitable for blending and bagging.
   • Exports largely to Egypt, Pakistan, and parts of Europe.
   • The Nilgiri and Munnar regions are emerging as centres for premium and speciality teas.

Economic Significance

Tea exports contribute substantially to India’s agricultural export earnings and help maintain employment in rural and plantation economies. The industry supports around 1.2 million workers directly and many more indirectly through processing, packaging, and logistics.
Foreign exchange earned from tea exports strengthens India’s agricultural trade balance, while the focus on value-added tea products — such as flavoured teas, organic teas, and instant tea extracts — enhances profitability and global competitiveness.

Key Growth Drivers

• Rising global demand for Indian tea in emerging markets of the Middle East, North Africa, and Eastern Europe.
• Improvement in quality standards and compliance with international residue regulations.
• Value addition and branding through the promotion of speciality teas like Darjeeling, Assam Orthodox, and Nilgiri teas.
• Government initiatives such as export incentives, quality certification, and market diversification programmes.

Challenges and Constraints

Despite progress, the Indian tea export sector faces several challenges:

• Climatic volatility: Unseasonal rains and droughts in tea-growing regions disrupt production and quality.
• Rising production costs: Labour, energy, and input costs reduce export competitiveness.
• Regulatory hurdles: Stringent pesticide and chemical residue norms in the European Union affect market access.
• Market concentration: Dependence on a few traditional markets makes exports vulnerable to geopolitical changes.
• Shipping and logistical bottlenecks: Delays at ports and freight shortages can impede timely delivery.

Emerging Trends

Recent developments indicate a gradual shift toward premiumisation and sustainability in Indian tea exports. Producers are increasingly adopting organic certification, rainforest-friendly cultivation, and traceability systems to appeal to environmentally conscious consumers.
The share of orthodox and green teas is also rising, reflecting diversification beyond the mass CTC segment. Exporters are targeting value-added retail products rather than bulk shipments to capture higher margins.

Future Outlook

The Indian tea export sector is projected to maintain steady growth over the next decade. Industry analysts estimate that total tea exports could surpass 275 million kilograms by the end of the decade, provided climatic conditions remain favourable and quality improvements continue.
Efforts to develop new markets in Africa, Latin America, and East Asia, along with promotion of speciality and health-based teas, will help India maintain its position as one of the top three tea exporters globally. Emphasis on sustainability, branding, and technological upgradation in processing and logistics will further enhance export competitiveness.