Tea imports by India

India, one of the world’s largest tea producers and exporters, also imports a modest quantity of tea each year. Although the volume of imports is small compared to the country’s vast domestic production, tea imports play a strategic role in meeting specific consumer demands, supporting the blending industry, and ensuring supply stability during periods of lower domestic output.

Overview of India’s Tea Import Profile

India’s total tea imports have remained limited in scale relative to its exports. In recent years, tea imports have been valued at around US $40–50 million annually, forming a minor share of the country’s overall agricultural imports. In contrast, India exports several hundred million kilograms of tea annually, valued at hundreds of millions of US dollars.
Despite being a net exporter, India’s tea import activity reflects the growing diversity of consumer tastes, the needs of the domestic blending and packaging sector, and international trade dynamics.

Reasons for Tea Imports

While India produces almost all varieties of black tea and some green teas, it imports certain types and grades for the following key reasons:

1. Specialty and Non-native Varieties:
   • India imports specific green teas, herbal teas, and flavoured blends not commonly produced domestically.
   • These varieties cater to niche consumers and urban markets that prefer exotic blends from East Asia and Africa.
2. Blending and Re-export:
   • Tea imports often serve as ingredients for blended teas, where Indian companies mix domestic and imported varieties to achieve desired flavours or price ranges.
   • Blended teas are re-exported to international markets under Indian brands.
3. Price and Supply Stability:
   • During years of low domestic yield—caused by erratic rainfall, pests, or rising production costs—imports help maintain supply and stabilise domestic prices.
4. Trade and Cost Advantages:
   • Competitive international prices, coupled with trade agreements, sometimes make imported teas a cost-effective choice for Indian packers and blenders.

Major Source Countries

India imports tea primarily from Kenya, Vietnam, Indonesia, Sri Lanka, and Nepal.

• Kenya supplies low-cost black tea, often used for blending.
• Vietnam exports both black and green teas suited to mass-market consumption.
• Sri Lanka (Ceylon tea) provides premium orthodox and flavoured teas, valued for quality blending.
• Nepal supplies fine orthodox teas similar in character to Darjeeling, catering to connoisseurs.

These imports ensure a steady supply of diverse tea types that support India’s large and growing domestic consumption market.

Recent Trends in Tea Imports

Although India’s total tea imports are relatively stable, a few notable trends have emerged:

• Increasing Diversity in Imports: The growing demand for green and specialty teas in urban markets has led to a slight rise in imports of non-traditional teas.
• Greater Blending Activity: Indian tea packers increasingly use imported teas to create new flavour profiles or maintain price competitiveness in export blends.
• Competitive Pressures: Imports of low-priced teas, particularly from African producers, have at times created price pressure on Indian small tea growers, prompting discussions about fair trade policies and quality control.

Despite these developments, India continues to be a net exporter of tea, with export volumes far exceeding imports.

Impact on the Domestic Tea Industry

The limited import of tea has both positive and challenging implications for India’s domestic industry:

• Positive Impacts:
  • Facilitates innovation in tea blending and product diversification.
  • Helps stabilise supply and meet consumer preferences for premium or exotic teas.
  • Encourages Indian tea exporters to maintain international standards by competing in a diversified market.
• Challenges:
  • Low-cost imports can depress local market prices, particularly affecting small tea growers.
  • Excessive blending of imported teas with Indian varieties may dilute the authenticity and branding of regional teas such as Assam or Darjeeling.
  • Quality control issues may arise if imported teas are not regulated under strict blending and labelling standards.

Policy and Regulatory Framework

The import of tea into India is regulated under the Tea Board of India, which functions under the Ministry of Commerce and Industry. The government ensures that imported teas meet quality and safety standards before entering domestic circulation. Measures such as:

• Import monitoring,
• Quality testing, and
• Country-of-origin labelling

are used to protect the integrity of Indian teas and support domestic producers.

Future Outlook

The demand for imported tea is expected to remain stable but diversified, with growth driven by changing consumer habits, health consciousness, and exposure to global tea cultures. Urban consumers increasingly prefer green, herbal, and wellness teas, categories where India still relies partially on imports.
At the same time, Indian producers are adapting by expanding production of specialty and value-added teas to reduce dependence on imports. Strengthening the domestic tea value chain through quality improvement, certification, and sustainable farming practices will help India retain its global leadership in tea production while addressing domestic needs.