Indian tea exporters are facing challenges in 2023 and are seeking promotional support from the Tea Board and the Indian government to boost their exports. Some of the headwinds mentioned include the conflict between Russia and Ukraine and a decline in demand from traditional markets like Europe and the Gulf countries. The exporters anticipate a drop of 10% or more in shipments in the current fiscal year following a growth of 18% in 2022.
Unfavourable weather conditions are also a concern for tea production in the current fiscal year. In the January–March 2023 period, total tea exports were down by 6% compared to the same period in the previous year. The chairman of the Indian Tea Exporters Association, Anshuman Kanoria, highlighted issues with the registration of new contracts in Iran, which has been dragging on for more than six months.
Furthermore, the article mentions that cheap imports from Nepal are adding to the challenges faced by Indian tea exporters. The exporters believe that the actual decline in Indian tea exports will be higher due to this factor. In the previous fiscal year (2022–23), the total export of tea from India was 228 million kg, according to data from the Tea Board.
The ongoing Russia-Ukraine war has affected demand from traditional markets such as Russia, Iran, and the US, which had recorded significant growth in the previous year. Tea exporters are seeking support from the commerce ministry to boost exports. They have sent representations to the ministry for promotional and infrastructure quality upgrade schemes. The exporters emphasize the need for promotional efforts in one or two key markets to boost demand.
Indian tea exporters are also looking for support from the Indian government, including funding and handholding to develop packing infrastructure. They aim to move from being primarily bulk exporters to exporting packed and “Made in India” tea.
The government has increased the export benefit scheme (RoTDEP) rate for tea exports to Rs 6.70 per kg based on recommendations from the Tea Board to encourage exports.