India's Tea Exports Record Robust Growth Of 23.79% During Jan-July 2024

New Delhi, Oct 9 (KNN) In a significant boost for India's tea industry, tea exports between January and July 2024 reached 144.50 million kilograms, marking a notable 23.79 per cent increase from the same period last year, according to data from the Tea Board of India.

The country had exported 116.73 million kilograms during the corresponding period in 2023, underscoring the industry's recovery in the international market post-pandemic.

Despite the volume growth, the unit price realisation of tea has experienced a decline. The average price per kilogram for exports in the first seven months of 2024 stood at Rs 256.37, down from Rs 264.96 per kilogram in the same period of 2023. This dip reflects global market trends and increasing competition from other tea-exporting nations.

To address the multiple challenges confronting the tea industry, the commerce ministry has approved a substantial outlay of Rs 664.09 crore under the Tea Development and Promotion Scheme.

This funding will be used for the remaining period of the 15th Finance Commission cycle, from the 2023-24 fiscal year through 2025-26.

The scheme is aimed at supporting the industry's development through key initiatives like plantation development, quality upgradation, market promotion, technological intervention, research, and welfare programs for workers.

A Tea Board official highlighted the importance of the scheme, emphasising its potential to reinvigorate the sector. The funds will address both long-standing issues and recent challenges, such as the need for technological advancements and sustainability in tea plantations.

The tea industry, however, continues to grapple with domestic hurdles. Industry reports from September pointed to sluggish growth in domestic consumption, exacerbated by rising food inflation.

The sector is also witnessing a slower-than-expected recovery in export markets due to the lingering effects of the COVID-19 pandemic.

Tea producer associations and the Tea Board have raised concerns over muted demand growth within India, further adding to the pressures facing the industry.

As the global demand for Indian tea shows resilience, these measures and interventions are seen as crucial in ensuring the long-term sustainability and competitiveness of India’s iconic tea sector.

(KNN Bureau)