Tea is a tradition, a livelihood for millions, and a vital contributor to the nation’s economy in India. However, while India remains one of the world’s largest producers of tea, over the years, it has struggled to maximize its apparent export potential. That triggered the Tea Board of India to set an ambitious target, which is to raise exports from 230 million kgs to 400 million kgs by 2047, concurrent with the centenary of Indian Independence.<\/p>\n\n\n\n
The blog narrates the story of India’s journey so far, the impediments present in the tea sector, and what strategies are being considered for meeting the outline of objectives set before it becomes a more dominant player in the global tea market.<\/p>\n\n\n\n
Current Status of the India’s Tea Industry<\/strong><\/p>\n\n\n\n India is the second-biggest tea producer in the world, accounting for a production of 1,350 million kg per year, which constitutes about 21% of the world’s total production of tea.<\/p>\n\n\n\n Despite having the leading position in production, India ranks only fourth among the tea-exporting countries, its share amounting to only a modest 12% in global exports. Most of the domestically produced tea is consumed within the country due to a high level of internal consumption, hence constraining export volumes. The Tea Board of India has thus felt the requirement for strategic value addition and market expansion to achieve better price realization and export figures.<\/p>\n\n\n\n While other major tea-exporting countries like Kenya and Sri Lanka have engaged and consolidated their respective shares in international trade with aggressive market strategies, India’s tea sector has been beset with a host of problems, including high production costs, fluctuating quality, and limited access to new markets.<\/p>\n\n\n\n