Weather Challenges Push Indian Tea Industry to New Export Heights

The Indian tea industry is experiencing a dip in production by over 100 million kg due to erratic weather and early annual garden closures, increasing costs. Despite challenges, better pricing and rising exports offer hope. Climate change impacts and export growth, particularly to Iraq, drive the industry's outlook.

The Indian tea industry faces a significant drop in production this year, exceeding 100 million kilograms, primarily due to erratic weather conditions and early garden closures. This production drop has led to increased costs per kilogram for planters, industry stakeholders reported on Monday.

Despite these challenges, better price realization and growing exports provide a silver lining. The country produced 1,112 million kg of tea from January to October 2024, compared to 1,178 million kg in the same period last year. Exports are expected to reach 240-250 million kg in 2024, up from approximately 231 million kg in the previous year.

Exporters remain optimistic, with shipments to Iraq accounting for 20% of tea exports and expectations to send 40-50 million kg to the country this fiscal year. The Indian Tea Exporters Association credits the high-risk appetite of merchants and proactive measures by the Tea Board for addressing quality and compliance challenges.

(With inputs from agencies.)