Understanding Tea

India’s Flourishing Tea Industry: Prominent Exporter and Growing Imports

India, renowned for its vibrant tea culture, holds a significant position in the global tea trade.

Tea Imports Exports

India’s Tea Exports

In 2021, India solidified its position as the 4th largest tea exporter globally, with tea exports valued at an impressive $709 million. Among India’s diverse export commodities, tea ranked as the 110th most exported product that year. Noteworthy destinations for Indian tea exports included Iran, accounting for $96.8 million, followed by Russia at $86.7 million, the United States at $68.6 million, the United Arab Emirates at $56.3 million, and Germany at $55.2 million.

Emerging Export Markets

India experienced remarkable growth in its tea exports between 2020 and 2021, reflecting its expanding presence in emerging markets. The fastest-growing export markets for Indian tea during this period were the United Arab Emirates, witnessing a significant increase of $14.6 million, followed by Germany at $14.2 million and the United States at $9.68 million. This growth indicates India’s successful efforts to cater to evolving global tea preferences and seize emerging market opportunities.

ContinentCountryTrade Value
AfricaAngola848,649
AfricaBenin194,441
AfricaBurkina Faso4,087,632
AfricaBotswana9,208
AfricaCote d’Ivoire2,894,621
AfricaCameroon242,288
AfricaDemocratic Republic of the Congo63,630
AfricaRepublic of the Congo377,612
AfricaComoros18
AfricaDjibouti8,129
AfricaAlgeria121,747
AfricaEgypt1,104,439
AfricaEthiopia5,362
AfricaGabon6,662
AfricaGhana8,376,365
AfricaGuinea1,320,510
AfricaGambia769,889
AfricaGuinea-Bissau235
AfricaEquatorial Guinea3,784
AfricaKenya2,216,359
AfricaLiberia6,756
AfricaMorocco144,980
AfricaMadagascar67,294
AfricaMali3,033,740
AfricaMozambique18,177
AfricaMauritania1,609
AfricaMauritius80,836
AfricaMalawi10,804
AfricaNamibia85
AfricaNiger4,651,528
AfricaNigeria2,043,832
AfricaRwanda2,429
AfricaSenegal511,672
AfricaSierra Leone889,133
AfricaSomalia134,954
AfricaSouth Sudan491
AfricaEswatini2
AfricaSeychelles61,830
AfricaTogo347,721
AfricaTunisia7,889,076
AfricaTanzania56,182
AfricaUganda14,321
AfricaSouth Africa443,051
AfricaZambia46,541
AsiaAfghanistan1,419,620
AsiaUnited Arab Emirates56,348,731
AsiaArmenia9,497
AsiaAzerbaijan1,623,519
AsiaBangladesh9,830
AsiaBahrain1,382,264
AsiaBrunei50,816
AsiaBhutan1,654,662
AsiaChina17,091,955
AsiaCyprus45,251
AsiaGeorgia190,443
AsiaHong Kong1,118,482
AsiaIndonesia740,520
AsiaIran96,766,377
AsiaIraq20,245,293
AsiaIsrael195,973
AsiaJordan188,571
AsiaJapan22,082,012
AsiaKazakhstan17,323,451
AsiaKyrgyzstan116,919
AsiaCambodia39,509
AsiaSouth Korea1,213,770
AsiaKuwait2,507,956
AsiaLebanon565,965
AsiaSri Lanka6,731,631
AsiaMacau385,220
AsiaMaldives220,044
AsiaBurma3,308,127
AsiaMongolia21,969
AsiaMalaysia3,000,300
AsiaNepal774,259
AsiaOman2,640,070
AsiaPakistan260,253
AsiaPhilippines268,897
AsiaPalestine150,498
AsiaQatar5,574,565
AsiaSaudi Arabia17,269,534
AsiaSingapore2,443,532
AsiaSyria293,450
AsiaThailand224,892
AsiaTajikistan1,167,766
AsiaTurkmenistan347,332
AsiaTurkey6,473,760
AsiaUzbekistan984,173
AsiaVietnam106,507
AsiaChinese Taipei7,050,869
EuropeAustria48,389
EuropeBelgium3,934,678
EuropeBulgaria23,765
EuropeBosnia and Herzegovina41,631
EuropeBelarus46,033
EuropeSwitzerland2,262,788
EuropeCzechia547,035
EuropeGermany55,167,529
EuropeDenmark770,579
EuropeSpain2,320,725
EuropeEstonia175,093
EuropeFinland1,162,645
EuropeFrance2,553,342
EuropeUnited Kingdom42,435,927
EuropeGreece133,108
EuropeCroatia169,419
EuropeHungary8,110
EuropeIreland3,611,654
EuropeIceland13,853
EuropeItaly9,682,010
EuropeLithuania57,231
EuropeLuxembourg9,545
EuropeLatvia126,786
EuropeMoldova43,276
EuropeNorth Macedonia5,991
EuropeMalta1,267
EuropeMontenegro8,060
EuropeNetherlands15,044,527
EuropeNorway408,666
EuropePoland15,962,912
EuropePortugal118,016
EuropeRomania36,069
EuropeRussia86,703,585
EuropeSerbia5,751
EuropeSlovakia37,484
EuropeSlovenia41,239
EuropeSweden1,634,652
EuropeUkraine5,184,531
North AmericaBelize29,721
North AmericaBermuda294
North AmericaBarbados29,649
North AmericaCanada17,330,185
North AmericaCosta Rica44,476
North AmericaCuraçao12,649
North AmericaCayman Islands2,592
North AmericaDominican Republic1,590
North AmericaGuatemala10,325
North AmericaJamaica6,398
North AmericaMexico1,901,760
North AmericaPanama39,278
North AmericaEl Salvador26,419
North AmericaTrinidad and Tobago28,479
North AmericaUnited States68,550,664
OceaniaAustralia21,750,152
OceaniaFiji193,309
OceaniaGuam7,248
OceaniaNew Caledonia3,069
OceaniaNew Zealand1,785,706
OceaniaPapua New Guinea1,149
OceaniaSamoa31
South AmericaArgentina30,561
South AmericaBrazil75,991
South AmericaChile59,050
South AmericaColombia440,075
South AmericaEcuador2,239
South AmericaGuyana25,371
South AmericaPeru6,556
South AmericaSuriname435,368
South AmericaUruguay13,365
South AmericaVenezuela37,266
Table: Where Does India Export Its Tea (2021)

Tea Imports into India

In 2021, India became the 36th largest importer of tea worldwide, with tea imports valued at $54.7 million. Tea ranked as the 555th most imported product in India during the same year. India primarily sourced its tea imports from Nepal, accounting for a substantial share of $20.2 million. Other notable import sources included Kenya at $11.7 million, Iran at $4.14 million, Vietnam at $3.96 million, and the United Arab Emirates at $3.76 million.

Emerging Import Markets

India’s tea imports experienced notable growth between 2020 and 2021, highlighting the diversification of its import sources. The fastest-growing import markets for tea in India during this period were the United Arab Emirates, exhibiting a substantial increase of $3.35 million, followed by Iran at $2.38 million and China at $589,000. These figures underscore India’s evolving tea industry, as it embraces a wider range of sources to meet domestic demand and cater to diverse consumer preferences.

Tariff Landscape

In 2018, India’s average tariff for imported tea stood at a substantial 97.2%. Among the countries with the highest import tariffs for tea were Angola, Burundi, Benin, Burkina Faso, and Botswana, all subject to a Most Favored Nation duty rate treatment of 100%. This tariff landscape emphasizes India’s commitment to regulating tea imports while supporting its domestic tea production and trade.

ContinentCountryTrade Value
AfricaEgypt1
AfricaKenya11,692,245
AfricaMorocco89
AfricaMozambique746,757
AfricaMalawi280,639
AfricaRwanda436,309
AfricaTanzania393,623
AfricaUganda103,794
AfricaSouth Africa1,668
AfricaZimbabwe613,350
AsiaUnited Arab Emirates3,758,029
AsiaChina1,745,492
AsiaHong Kong3,078
AsiaIndonesia1,804,878
AsiaIran4,144,428
AsiaIraq111
AsiaJapan460,006
AsiaSouth Korea8,788
AsiaSri Lanka1,485,104
AsiaBurma65,152
AsiaMalaysia2
AsiaNepal20,247,424
AsiaSaudi Arabia55,406
AsiaSingapore18,576
AsiaThailand20,225
AsiaTurkey97,285
AsiaVietnam3,955,944
AsiaChinese Taipei14,784
EuropeAustria7,950
EuropeBelgium533
EuropeSwitzerland37
EuropeCzechia19,235
EuropeGermany90,367
EuropeDenmark142
EuropeFinland14
EuropeFrance106
EuropeUnited Kingdom463,347
EuropeIreland52
EuropeItaly45,609
EuropeNetherlands31,876
EuropePortugal5
EuropeSweden233
North AmericaCanada3,087
North AmericaUnited States241,684
OceaniaAustralia157,033
South AmericaArgentina1,439,153
South AmericaBrazil479
Table: Where Does India Import Its Tea (2021)

Vietnam Tea: A Popular and Reliable Choice for India’s Imports

Vietnam tea has consistently been a popular and trustworthy choice for India, thanks to its premium quality and competitive pricing. In 2021, India imported tea from Vietnam with a total value of $3,955,944, marking a 3.2% increase compared to the previous year. Vietnam holds a significant position as an important supplier of tea to India, catering to its tea requirements effectively.

Conclusion

India’s thriving tea industry showcases its prominence as a major tea exporter and importer in the global market. With its impressive tea exports to Iran, Russia, the United States, and other destinations, India continues to strengthen its position. Simultaneously, its growing tea imports from Nepal, Kenya, and other countries demonstrate India’s willingness to diversify its tea sources to meet domestic demand and cater to evolving consumer preferences.

To sustain growth, India must foster relationships with existing trade partners while actively exploring emerging markets. Monitoring tea consumption trends, promoting sustainable practices, and optimizing tariff policies will enable India to adapt to changing market dynamics and maintain its position as a leading tea-producing nation. By embracing innovation and ensuring quality, India can further enhance its tea industry’s competitiveness and contribute to the global tea culture cherished by consumers worldwide.

Data: BACI

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