India’s tea exports projected to grow 15% in next five years
The Dollar Business Bureau | @TheDollarBiz
India’s tea exports are forecast to grow to around 260 million kilograms by 2019-20, up about 15% from the current 225.76 million kilograms, according to the Commerce Ministry. In terms of value, the value of tea exports in 2019-20 (at today’s prices) is estimated at around Rs.5,145 crore. This suggests a growth of around 14% from the current levels of Rs.4,509 crore. Russia is the largest importer of tea from India, accounting for around 38.62 million kilograms or about 17% of India’s total exports. However, Pakistan is a market to watch. According to the Commerce Ministry, Pakistan’s tea imports from India are forecast to grow to around 30 million kilograms by 2019-20, up about 50% from the current levels of around 20 million kilograms.
India’s tea production has grown steadily in the last three years. According to the Tea Board, total annual tea production in India grew to around 1.2 billion kilograms in FY2013-14, up about 9% from around 1.1 billion kilograms in FY2011-12. However, domestic consumption grew at a slower pace to around 911 million kilograms in FY2013-14, up about 4.3% from around 873 million kilograms in FY2011-12.