Indian Tea Industry

Context: 

India has taken several steps to boost the output, create a niche brand for Indian tea and ensure the welfare of the families associated with the tea industry.

India’s Position:

• 2nd largest tea producer and largest black tea producer after China and 4th largest exporter of Tea in the world.
• Also the largest consumer of black tea and accounts for 18% of the total World tea consumption.
• The main tea-growing regions are in the Northeast (including Assam) and in north Bengal (Darjeeling district and the Dooars region). 
• Tea is also grown on a large scale in the Nilgiris in south India. 
• Darjeeling Tea was the first GI tag product, also known as “Champagne of teas” due to its floral aroma.
• The Tea Industry in India is regulated by the Tea Board of India.

Market size of Tea Industry in India:

• India is among the top 5 tea exporters in the world making about 10% of the total exports. 
• The market in the country is projected to witness a further growth in the years 2022-2027, growing at a CAGR of 4.2%.
• In the year 2026, the tea industry in India is expected to attain 1.40 million tons production.

Issues related with the Indian Tea Sector:

• Stiff competition and improved standards in the world market
• Decline in productivity and quality
• Small Tea Growers (STGs) are not getting the right green leaf price.
• Global factors: Decline in demand from European markets in the wake of the Russia-Ukraine war

Suggestive Measures:

• One District and One Product should be focused 
• Aroma of Tea needs to be improved
• Support for small farmers should be extended
• Create infrastructure to boost exports
• Promote GI Tea and organic tea
• Modernization to help local supply networks 
• Adaptability to meet challenges of climate change 

Way Ahead:

The Government should review and revisit the stringent requirements for certificate of origin on tea imports from Foreign to boost up the domestic market.

News Source: IBEF