India possesses every essential element to rise as a dominant force in the global tea industry, a sentiment echoed by James Suranga Perera, the esteemed Executive Director of the International Tea Committee.
During his recent address at the India International Tea Convention in Kochi, Mr. Perera informed that India proudly stands as the world’s second-largest producer and consumer of tea, and its third-largest exporter.
In the year 2024, the global tea landscape saw a total production of 7.074 billion kg and consumption reaching 6.97 billion kg. Within this, India’s contribution was significant, producing 1.303 billion kg and consuming 1.22 billion kg domestically.
Delving into export figures, Kenya, currently the world’s largest tea exporter, ships almost its entire production. China, the second-largest exporter, maintains a strong domestic consumption for a substantial portion of its own output. While Sri Lanka exported 245 million kg, bringing in $1.4 billion, India’s exports stood at 255 million kg, valued at nearly $800 million. This highlights a clear opportunity for India to enhance its export value.
To achieve better market realization and penetrate new territories, India should strategically prioritize enhancing the quality of its tea. Furthermore, exploring untapped markets in regions like South America and Africa could prove highly beneficial.
Domestically, a promising trend indicates that Indian consumers are showing a growing inclination to invest in higher-quality tea. Although India’s current per capita consumption is 840 grams annually, this pales in comparison to Turkey’s impressive 3 kg per year, which is the highest globally. Mr. Perera emphasized that even if India’s per capita consumption were to increase to just one kilogram, the country would be able to absorb its entire tea production. This clearly illustrates the immense potential waiting to be harnessed within India’s tea sector.