Indian Tea Industry

ITA submits white paper on Darjeeling tea to WB govt, highlights challenges

Senior officials from the association met West Bengal's labour minister Moloy Ghatak on Tuesday and handed over the white paper

Tea industry witnesses overall production fall, rise in exports in 2024

The tea industry is likely to witness a fall in total production by over 100 million kg till the end of this year due to erratic weather conditions coupled with early annual closure of gardens, resulting in an increase in cost per kg for planters, stakeholders said on Monday. However, the silver lining this year was better price realisation and growing exports. As compared to around 1,178 million kg output during the first 10 months of 2023, the country produced around 1,112 million kg of tea in the January-October period of the current calendar year, while exports were expected to touch 240-250 million kg in 2024, up from around 231 million kg in the previous year, they said. The production is down by around 66 million kg during the January-October period in 2024, while there is expected to be a dip in production by another 45-50 million kg as plucking has been stopped after November, Indian Tea Association chairman Hemant Bangur said. Despite geo-political challenges and currency

From the humble chai to boutique teas, a beverage for all seasons

India is home to some of the most exquisite and premium teas, cherished for their unique flavors, but the humble chai holds its own special place even among aficionados

Asian tea producers eyeing 'untapped' African mkt for exports: ATA chairman

Tea producers of Asia are now targeting the 'untapped' African market to shore up exports for which they plan to work out a strategy in this regard. Hemant Bangur, chairman of Asian Tea Alliance (ATA), said there is a need to tap the African market. ATA countries include India, Bangladesh, Indonesia, Nepal, and Sri Lanka. "Africa is a huge untapped and unpenetrated market. The existing export markets of Europe have become saturated. Asian tea producers consider Africa as a focussed market and we will work towards this", Bangur, also the chairman of the Indian Tea Association (ITA), told reporters. Bangur said that the ATA also strongly discourage the promotion of genetically modified clones in the tea industry. "The alliance countries will collaborate to produce more climate resilient clones to produce sustainable tea. The industry also plans to promote regenerative agriculture which will focus on water retention and carbon sequestration," he said. Bangur said that there is a glo

Tea industry on edge as Iran-Israel tensions threaten export revival

The biggest worry for Indian tea exporters when the Israel-Hamas conflict flared up in October 2023 was that it would spill over to other West Asian countries, particularly Iran

Tea industry seeks higher Rodtep rates to make exports competitive overseas

The tea industry has sought higher rates under the RoDTEP scheme to make exports more competitive in the overseas markets. Leading industry body Indian Tea Association (ITA), in its pre-budget memorandum, said that the present RoDTEP rate for bulk tea is 1.7 per cent (free on board) subject to a cap of Rs 6.70 per kilogram. The association urged the government to increase the reward base rate under the Remission of Duties and Taxes on Exported Products (RoDTEP) for black tea in bulk to remain competitive in the international markets. The RoDTEP scheme ensures that exporters receive refunds on embedded taxes and duties that were previously non-recoverable. Another industry body Tea Association of India (TAI), in its pre-budget proposal submitted to the government, said the RoDTEP rate for tea should be higher than the earlier MEIS (merchandise exports incentive scheme) of five per cent to enable Indian tea to retain its competitiveness in the global market. Since its inception in .

Tea prices soar as heatwaves, floods slash output in key producing regions

Production was also affected by the government's decision to ban 20 pesticides

Erratic rainfall brews challenges for North India tea output, prices up

Except for Darjeeling, the other categories have been on an uptrend since mid-May

North Indian tea output may be hit by 60 million kgs till June: TAI

The North Indian tea industry is facing a production shortfall of 60 million kgs till June of the current crop year over the corresponding period last year due to adverse weather conditions, according to an estimate by a tea body. The loss of the first and second flush crops, which produce the highest quality teas of the year, will undoubtedly impact the producers' revenue and may push tea prices higher, officials say. The states of Assam and West Bengal, which comprise the North Indian tea industry, are experiencing a precarious situation. Excessive heat coupled with a rain deficit in May, followed by excess rainfall and a lack of sunshine, has severely impacted production. Tea Association of India (TAI) president Sandeep Singhania estimated that the combined crop loss is estimated to be 60 million kgs by June compared to the previous year's output. "As reported by the member tea estates of the association, the tea estates of Assam and West Bengal are estimated to be behind by aro

ITA seeks financial aid from Centre to support Darjeeling tea industry

The Indian Tea Association (ITA) on Friday reiterated its plea for financial assistance from the Centre to support the struggling Darjeeling tea industry. According to the ITA, the situation in Darjeeling is critical due to decreasing yields and plummeting prices. Without a financial relief package, the survival of the Darjeeling tea industry is in jeopardy, the association said, adding that it has urged the government to consider and act upon a financial revival package endorsed by the Parliamentary Standing Committee on Commerce in March 2022. "The association has urged the government to extend a financial revival package to the Darjeeling tea sector which has been already endorsed by the Parliamentary Standing Committee on commerce in March 2022. This awaits consideration and action", the ITA said. The ITA, quoting Tea Board data, highlighted that adverse weather conditions have affected tea production in Assam and West Bengal, leading to a significant decrease in production. F

Small tea growers voice concern over 'poor' quality teas flooding market

Confederation of Indian Small Tea Growers' Associations (CISTA), a body of small tea growers, has voiced concern over the alleged poor quality of teas flooding the market and urged the intervention of the Tea Board in this regard. In a letter written to Tea Board chairman A S Bhatia, CISTA president Bijoy Gopal Chakraborty said that a generic campaign focussed on the health benefits of drinking tea should be carried out to promote consumption among the young people who are more enticed to partake soft drinks and coffee. "We have observed that bad quality teas are flooded in the domestic market and these were being sold at a very low price. Poor quality tea manufacturing and packaging should be stopped immediately", the association said in the letter. CISTA said that the commerce ministry has enhanced the budget for a generic campaign of tea which is the need of the hour. "Young people in the age group of 18 years to 22 years are far away from tea drinking and have more affinity for

Mandatory 100% auction of dust tea grades heats up debate in tea industry

Some packet tea players are reportedly putting pressure on leaf factories to oppose the proposed 100 per cent dust grade auction regulation

Tea exports dip 1.65% during Jan to Oct 2023, reach 182.69 million kg

Tea exports from the country dipped 1.65 per cent at 182.69 million kilogramme during January to October of 2023 as compared to 185.75 million kilogramme in the same period of the previous calendar. Exports from North India during the first 10 months of calendar 2023 stood lower at 110.33 million kilogramme, registering a decline of 4.62 per cent from the preceding similar period, according to Tea Board data. Similarly, exports from South India on the contrary increased 3.25 per cent at 72.36 million kilogramme during January to October of 2023, as against 70.08 million kilogramme in the similar previous period. During calendar 2022, exports of tea stood at 231.08 million kilogramme, registering a rise of 17.57 per cent over 2021 at 196.54 million kilogramme. Sources in the tea industry said that the export scenario remains grim as shipments to Iran are in jeopardy due to the payment problem with that country. Iran traditionally imports 20 per cent of India's tea exports, but that

Pricing to quality: West Bengal GoM to look into tea industry woes

The GoM would also be interacting with stakeholders of the industry to deliberate on the issues facing the industry and where the West Bengal government can help

Tea production declines by 6.18% to 127.12 million kgs in November 2023

Tea production in the country has dipped by 6.18 per cent to 127.12 million kilograms in November 2023. According to Tea Board data, the production in the year-ago month was 135.49 million kgs. In North India, primarily comprising Assam and West Bengal, the production volume was at 106.23 million kgs (mkgs), down from 114.18 mkgs in the same period previous year. The production figures in November 2023 in South India stood lower at 20.89 mkgs from 21.31 mkgs in the same month of 2022. Maintaining the trend, the production of small growers was higher than the organised gardens in the month under review. Small growers produced 67.50 mkgs in November 2023, Tea Board data said. Tea Board had issued notifications regarding plucking restrictions during the winter months in order to preserve the quality of bushes. For tea estates in Darjeeling and gardens located at higher elevations, the last date for plucking of green leaves was December 11, 2023. The same for North Bengal's Dooars a

Rising input costs, lower price realisation in 2023 trouble tea industry

The year witnessed the tea industry facing an uncertain future, plagued by rising input costs and lower price realisation at auctions, making operations unviable. The apex body of the planters, the Indian Tea Association (ITA), has estimated that while tea prices increased at a compounded annual growth rate (CAGR) of 4 per cent over the past decade, input costs of coal and gas have simultaneously risen at a rate of 9-15 per cent. Secretary general of ITA Arijit Raha said price realisation trends declined alarmingly in 2023 compared to 2022. "While inputs costs have risen, tea prices have not increased in a proportionate manner. This shows that the industry is passing through a crisis," Raha said. ITA said the emergence of small tea growers (STGs) resulted in an exponential rise in production. With internal consumption almost stagnant and the exports scenario depressed, surplus tea has remained in the system. According to Tea Board data, exports of the beverage during January to ..

McLeod Russel set to focus on Uganda, India estates after Vietnam exit

The company recently signed an agreement for selling its business in Vietnam to TLK Agriculture Joint Stock Company of Vietnam for $2.15 million

Tea industry passing through acute financial crisis: ITA status paper

Indian Tea Association (ITA), the leading body of tea planters, Thursday said that the industry is passing through a phase of acute financial crisis with prices not keeping pace with the rising costs of production. The ITA in its status paper 'Tea scenario 2023' said while tea prices increased at a compounded annual growth rate (CAGR) of around four per cent over the last decade, costs of vital inputs like coal and gas among others grew at a CAGR of nine per cent to 15 per cent during the same period. Besides, the exponential increase in production following the emergence of small tea growers resulted in surplus teas remaining in the system as domestic consumption and exports have not grown to absorb it, the status paper said. On the price trends of the beverage during the current fiscal, it said tea prices declined alarmingly in 2023 compared to 2022. The auction prices of CTC and dust teas covering sale numbers 14 to 39 are down by Rs 12.49 per kilogram for Assam tea and Rs 11.30

Israel-Hamas war: Tea exporters worry conflict spillover to Iran

Tea export volumes to Israel are insignificant. But any repercussions on Iran, one of the top buyers of Indian tea, will impact the industry, exporters apprehend

Tea production decreases by around 4% to 177.95 mkgs in August, shows data

Tea production across the country declined by around four per cent to 177.95 million kilograms in August this year as compared to the output in the year-ago month. The production volume in August last year was 185.48 million kgs (mkgs). According to Tea Board data, production in north India, primarily comprising the states of Assam and West Bengal, fell to 158.04 mkgs in the month under review from 170.97 mkgs produced in August, 2022. In Assam, production volumes decreased to 99.78 mkgs in August this year as against 109.81 mkgs in the year-ago month. Production in West Bengal also fell to 53.65 mkgs in August 2023, as against 56.19 mkgs in the corresponding month last year. Tea industry sources said that production in north India declined due to adverse weather conditions and pest attacks. However, production volumes increased in South India, which stood at 19.91 mkgs in August this year as compared to 14.51 mkgs in the same month of 2022.