G20 nations are positive about India’s tea exports growth

CURRENT INDIAN TEA MARKET

India is considered one of the biggest producers of tea globally. It is ranked 2^nd in world tea production after China. Besides being a leading producer, India is also the 5th largest tea consumer in the world. The northern part of India is the biggest contributor to the total tea production of India which is almost three-fourths of the total production of the industry. The tea market of India is completely running on a healthy and hygienic mode of production.

Tea production in India in the last five years is as follows (2017-2021):

In the year 2020, the country consumed close to 1.1 million tons of tea. The market is projected to grow even more in the future which would be close to 1.40 million tons in the duration of 2023-2028. This figure is estimated based on factors such as rising population, rise in incomes, and healthy tea production across the nation. Some of the major tea brands available in India are Tata Consumer Products Ltd, Wagh Bakri Tea Group, Pataka Group, and Hindustan Unilever Ltd.

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WHY DO G20 NATIONS THINK THAT INDIA’S TEA EXPORTS HAVE A BRIGHT FUTURE?

The export market of India with regard to tea has a bright future as per G20 nations due to the uncertainties growing from Iran and bad product delivery from the crises-stricken, Sri Lanka. Due to these factors, India was able to export 134.1 million kg of tea to the world in the time span of just seven months (April-October) of the ongoing year 2022-23. The major proportion of exports was made to the G20 nations. The official data released, showed that more than 112 million kg of tea was exported across the world in the initial seven months of the previous fiscal year (2021-22).         

Mr. Saurav Pahari, the chairman of Tea Board India has said that “India has achieved 63% of the total export target of 225 million kg this year. The price at which the tea is exported is also decent and satisfactory.”

Mr. PK Bezbaruah, the former chairman of the tea board is also positive that the Indian Tea market, accompanied by tea exports would grow further and will set new benchmarks in the near future. He mentioned that even in the year 2022-23, the exports of tea went up by 30 million kg as compared to the last year. As per him, Indian tea exports have grown in the countries like Russia, China, and the USA.

Some of the major countries that import Indian Tea the most in the year 2021 are as follows:

As per Bezbaruah, almost 80-100 million kg of Indian tea production would go to these above-mentioned countries this year also.

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OPPORTUNITY FOR INDIA AT THE G20 SUMMIT 2023

According to Pahari, the present chairman of the Tea board of India, the G20 presidency is a very big and potential opportunity to showcase and portray the strength of the nation to the world. The tea board of India is working very hard to promote tea at the summit.

Various experience zones would be set up in every G20 official meeting that is going to take place this year till December 2023. This decision is taken by Mr. Pahari by assuming that there would be amazing footfall during these meetings. To set up these zones, places like Mumbai, Jaipur, Bengaluru, and Kevadia are selected by the Tea board of India. As per Pahari, tea has become one of those beverages that provide health benefits and people are getting attracted to this fact.

Mr. Anshuman Kanoria, chairman of the Indian tea exporter’s association said that it is great to see that India would be promoting its beverage at the G20 meets. He added that along with tea, the history of this beverage should also be shared at the G20 meetings.

SRI LANKA TEA EXPORTS ARE IN DANGER

As the complete nation is facing an economic crisis currently, the exports of Sri Lanka are also on hold due to the major loss faced by traders and overseas marketers. Due to this situation, Indian tea exporters are enjoying loads of tea exports and profits. To maintain this momentum, tea exporters from India should maintain their work.

The trend that was followed in the past was as follows:

Out of all the statistics, the major insight shared by the reports was that India was successful in getting a rise in its share in those countries that previously imported tea from Sri Lanka. The names of those countries are Turkey and Saudi Arabia. As per Turkey Export Data for the last 5 years (2017-2021), tea imports of Turkey from India rose from USD 3,837 to USD 6,445.

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OUR LAST VERDICT

We hope you liked our content, and it has helped you in your value addition. In the end, we just want to state that we also favor tea being promoted in the G20 meetings. This will not only help in increasing the exports of this Indian beverage but will also generate some source of income for the people who produce tea. Also, by seeing the current scenario of Iran and Sri Lanka, India is one of the potential countries that can export tea to the world. So, because of all these reasons, G20 countries also predict a growing tea market in India.

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