Tamil Nadu (Commonwealth Union) – The Indian tea industry, long struggling with various challenges, has received a significant boost with recent data revealing its success in surpassing Sri Lanka to become the world’s second-largest tea exporter. According to the Tea Board of India, India exported a record 254 million kilograms (Mkg) of tea in 2024, marking a historic milestone. While Kenya continued to hold the top spot, exporting over 500 Mkg of tea, India’s rise to second place highlights a major shift in the global tea export landscape. In 2023, India and Sri Lanka were in a tight race, each exporting around 231 Mkg of tea. However, in 2024, India outperformed Sri Lanka by exporting 24 Mkg more, a remarkable achievement for the Indian tea industry.
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This export performance is the second-best for India, trailing only behind 2018, when it exported approximately 256 Mkg. The value of India’s tea exports in 2024 reached a significant Rs 7,112 crore, underlining the importance of the sector to the nation’s economy. Furthermore, the growth in tea exports comes after several years of relatively stable figures, ranging between 200-225 Mkg annually, excluding the strong performance in 2018. This impressive surge has given the industry renewed optimism. Experts now believe that India could potentially reach the 300 Mkg mark by 2030, especially as the country produces an average of 1,400 Mkg of tea each year.
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The growth in exports has largely been driven by the demand for Indian orthodox tea, which has been bolstered by a variety of government initiatives. “With favorable export policies from the Centre and support from state governments, the industry is hopeful of expanding its export markets further in the years ahead,” said Prabir Kumar Bhattacharjee, Secretary General of the Tea Association of India. Meanwhile, Sri Lanka’s tea exports have been in decline, a trend that was anticipated due to reduced production. Accordingly, former Sri Lanka Tea Board Chairperson Niraj de Mel stated, “The drop in production, linked to reduced supplies, was expected. Exports have fallen significantly since 2016, and despite some recovery, India has now pulled ahead.”
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India’s ability to expand its market share, particularly in West Asia, has been a key factor in its success. When Sri Lanka faced production challenges, Indian exporters capitalized on the opportunity, maintaining strong shipment volumes to countries like the UAE, Iraq, Iran, Russia, the USA, and the UK. Currently, India exports tea to over 25 countries, securing its place as one of the top five tea exporters globally, accounting for approximately 10% of the total world exports. Indian tea is highly regarded, with varieties such as Assam, Darjeeling, and Nilgiri tea considered among the finest globally. The vast majority of India’s tea exports are black tea, which constitutes about 96% of the total export volume. Additionally, other varieties, including green tea, herbal tea, masala tea, and lemon tea, are also gaining popularity in international markets. India’s tea industry is characterized by its diverse production regions, with Assam, Darjeeling, and Nilgiri being the major tea-growing areas. Furthermore, small tea growers, a rapidly growing segment, contribute nearly 52% of the total tea production in the country.
Additionally, the government, through the Tea Board, has implemented several initiatives to support these growers, including the formation of self-help groups, farmer producer organizations, and mini tea factories to encourage entrepreneurship and employment in rural areas. The tea industry also plays a vital role in India’s economy, directly employing over 1.16 million workers, with an equal number involved indirectly. It remains a crucial source of livelihood, especially in rural and semi-urban areas. India’s rise to the second position in global tea exports is a testament to the potential of the country’s tea industry. With continued government support, growing global demand, and a focus on quality production, India is well-poised to further strengthen its position in the global tea market and continue its upward trajectory in the coming years
