Tea Industry Faces Challenges Amid Inflation and Export Pressures

The tea industry is facing significant challenges including sluggish domestic consumption, rising food inflation, and slow recovery of exports following the COVID-19 pandemic. These issues were highlighted by Sanjay Shah, chairman of FAITTA, who expressed concerns over muted demand and the impact of rising prices on consumer behavior.

Sluggish growth in domestic consumption, rising food inflation, and slow recovery of exports post-COVID-19 are significant challenges faced by the tea industry, according to a senior official.

During the 10th annual general meeting of the Federation of All India Tea Traders Association (FAITTA), chairman Sanjay Shah highlighted concerns over muted demand growth and the shift from loose to packet tea consumption.

Shah emphasized that rising food inflation affects consumption patterns, forcing consumers to opt for lower-priced non-premium products. With some recovery in demand, average tea prices in 2022-23 were at Rs 180 per kg. However, the tea prices softened again in 2023 due to export pressures, despite a higher growth trajectory in Indian tea exports.

(With inputs from agencies.)