As India’s tea exports touched their highest levels in years, a sharp rise in imports is raising concerns among producers. In 2024, India became the third-largest tea exporter, overtaking Sri Lanka, with exports of 254.67 million kg (mkg), up from 231.69 mkg in 2023. Export earnings also rose to Rs 7,111.43 crore from Rs 6,160.86 crore. Data from the International Tea Committee Bulletin for 2024 show that India ranked third after Kenya and China. In 2023, Sri Lanka held the third position. However, producers’ bodies Indian Tea Association (ITA) and Tea Association of India (TAI) believe that net exports may not have seen any significant rise. Hemant Bangur, chairman of ITA, said that according to customs declarations, about 45 mkg of tea was imported into India in 2024; therefore, net exports were not significantly higher. Moreover, some of the imported tea may have been used for re-export and passed off as Indian tea, he said. “That will impact the image of Indian tea in the international market in the long-term.” “We have taken it up with the Tea Board and suggested a strong standard operating procedure (SOP) on imported tea. We should adopt models being followed by other producing countries like Sri Lanka,” he said, adding that India has the legal framework but needs to enforce it. According to a Tea Board notification, exporters have to clearly mention the origin of tea in packages and invoices while exporting. Any tea exported as Indian tea must comprise 100 per cent Indian tea. If Indian tea is blended with imported tea, it has to be exported as multi-origin. Sandeep Singhania, president of TAI, said that some importers had flouted norms and sold imported tea meant for re-export in the domestic market. Imported tea used for re-export is subject to nil duty, he explained. “If sold in the domestic market, it has to pay 100 per cent duty. But some importers sold it in the domestic market evading duty, causing loss to the exchequer.” The TAI and ITA have raised the issue with the Tea Board. “The Tea Board of India is enquiring into the matter,” said Saurav Pahari, deputy chairman, Tea Board. The Tea Council of India, an advisory body set up by the Tea Board to monitor import and export of tea, has been reactivated. Singhania said that the industry is part of the Tea Council of India. “It has been re-established and we are going to study how imported tea has been used.” According to industry representatives, imports from Kenya, which faced an oversupply, saw a sharp increase. Tea Board of Kenya data show that exports to India rose 225 per cent to 17.13 mkg in 2024. Producers said that tea gardens in North India had gone for an early closure last year to maintain the demand-supply scenario and support prices. “We sacrificed about 50 mkg of tea. But it seems our efforts have gone waste as imports made their way into the market and prices dropped towards the end of the year,” said an industry representative. Some industry sources also pointed out that domestic producers have not been able to fully leverage the demand for Indian tea in the international market. Meanwhile, the Tea Board is looking to explore new markets. “We are trying to tap Australia and some European nations,” Pahari said. “The Tea Board has been aggressively following up on opportunities. We have held extensive video conferences with trade associations of different nations and also asked our regular buyers not to let go of our hand. Hopefully, we have been able to project Indian tea as clean and safe tea,” he added. Anshuman Kanoria, chairman of Indian Tea Exporters Association (ITEA), said that Indian merchant tea exporters had taken risks to increase exports to large, sensitive markets in West Asia, chiefly Iraq, while maintaining robust exports to Russia despite the war. However, he added, a lot more needs to be done to ensure better compliance of Indian teas with national laws and global quality norms to capture a larger market share in the Western and Eastern markets.

India's tea exports at all-time high, but import surge raises red flags

India's tea exports reached an all-time high of 254.67 million kg (mkg) in 2024, up from 231.69 mkg in 2023, making it the third-largest tea exporter globally. The country's export earnings also increased to Rs 7,111.43 crore from Rs 6,160.86 crore. However, a significant rise in tea imports is causing concerns among producers, as some imported tea is being sold domestically, evading customs duties. The Indian Tea Association and Tea Association of India have raised the issue with the Tea Board, suggesting stricter enforcement of import regulations.