India Surpasses Sri Lanka To Become The 2nd Largest Tea Exporter Globally

India has achieved a major milestone in the global tea market, surpassing Sri Lanka to become the world’s second-largest tea exporter. According to data from the Tea Board of India, the country exported a record-breaking 255 million kg of tea in 2024, marking a 10-year high despite challenges in the international market.

India’s Rising Tea Exports

India’s tea exports saw a significant increase of 10% from 231.69 million kg in 2023. The total export value also surged by 15%, reaching ₹7,111 crore in 2024, up from ₹6,161 crore in the previous year. Higher global demand and increased pricing contributed to this growth.

Kenya continues to hold the top spot as the world’s leading tea exporter, but India’s strong performance has cemented its position as a key player in the industry.

Key Markets and Growth Drivers

India exports tea to over 25 countries, with its primary markets being the United Arab Emirates (UAE), Iraq, Iran, Russia, the United States, and the United Kingdom. The country saw a notable increase in shipments to Iraq, which accounted for 20% of total exports. Exporters anticipate sending between 40-50 million kg to Iraq in the coming fiscal year.

Indian tea producers successfully capitalized on market opportunities in West Asia when Sri Lanka faced production challenges, helping sustain and expand India’s footprint in the region.

Diverse Tea Production Across India

India’s tea industry is renowned for producing some of the finest tea varieties, including Assam, Darjeeling, and Nilgiri tea. Black tea dominates exports, making up 96% of total shipments. Other varieties such as green tea, herbal tea, masala tea, and lemon tea also contribute to exports.

The country’s tea production is spread across various regions:

• Assam: The largest producer, with key regions being the Assam Valley and Cachar.
• West Bengal: Major tea-producing regions include Darjeeling, Dooars, and Terai.
• South India: Tamil Nadu, Kerala, and Karnataka contribute around 17% of the total output.

Support for Small Tea Growers and Workforce

A significant portion of India’s tea production is driven by small tea growers (STGs), who contribute 52% of the total output. There are approximately 2.3 lakh small tea growers actively involved in the industry.

To support this growing sector, the Government of India and the Tea Board have implemented several initiatives:

• Formation of 352 Self-Help Groups (SHGs), 440 Farmer Producer Organisations (FPOs), and 17 Farmer Producer Companies (FPCs).
• Training programs focused on quality plucking, crop management, and capacity building.
• Provision of pruning machines and mechanical harvesters to improve productivity.
• Establishment of mini tea factories to encourage entrepreneurship and employment opportunities.

Employment and Economic Impact

The tea industry plays a crucial role in India’s economy, directly employing 1.16 million workers, with an equal number of people involved indirectly. The sector continues to be a key source of livelihood, especially in rural areas.

India’s rise as the world’s second-largest tea exporter highlights the resilience and strength of its tea industry. With continued government support, expanding global markets, and a focus on quality production, India is well-positioned to further strengthen its presence in the global tea trade.

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