Pandemic hits India’s tea exports

India, the second largest producer of tea in the world, suffered a loss of 44 million kg (mkg) in the export market in 2020, around 18.2% less than what it had sold overseas the previous year, according to the latest statistics from some industry sources. On the other hand, Kenya, India’s biggest competitor in tea exports, has gained 22mkg business last year.

According to the latest data, India lost 21 mkg business in Iran, and 9 mkg in Russia, while its exports to Poland, Afghanistan and Saudi Arabia increased marginally. Kenya benefited from India’s loss and captured 85% of the Pakistan market.

According to tea industry experts, the main reason behind India’s shortfall in the exports is the indefinite Covid-induced lockdown which resulted in skiffing of overgrown leaves. Atul Asthana, CEO and MD of Goodricke, says, “It resulted in an average year-on-year crop loss of 10%, which, in turn, affected exports of good quality tea by around 18%.”

Production of tea in India was 1,256 million kg in 2020, a 9.7% yoy decrease from 2019. Out of this, India exported 262 mkg tea. On the other hand, Kenya exported 519 million kg tea last year while its total production was 570 million kg.