TEA INDUSTRY IN INDIA (Syllabus: GS Paper 3 – Economy)

News-CRUX-10     11th January 2024        

Context: India’s tea industry is experiencing challenges reminiscent of the “dark phase” of 2002-07, calling for introspection and resilience.

Tea Industry in India

  • Global Ranking: India stands as the second-largest global tea producer.
  • North East States: The northern part of India dominates production, contributing approximately 83% in the 2021-22 period. Assam leads, followed by West Bengal, with distinct regions like Dooars, Terai, and Darjeeling.
  • Southern States: The southern region contributes about 17% to the country's total tea production, with key states being Tamil Nadu, Kerala, and Karnataka.
  • Consumption: India ranks among the top tea-consuming nations, with 80% of its production consumed domestically.
  • Export: India is a major player, ranking among the top 5 global tea exporters, accounting for approximately 10% of total exports.

oDiverse Markets: India exports tea to over 25 countries, with major importers including Russia, Iran, UAE, USA, UK, Germany, and China.

oTea Types: The exported tea varieties include black tea, regular tea, green tea, herbal tea, masala tea, and lemon tea.

  • Global Reputation: Indian Assam, Darjeeling, and Nilgiri teas are renowned globally for their quality, with strong geographical indications.
  • GI Tag: Darjeeling Tea, known as the "Champagne of teas," was the first product to receive a GI tag.
  • Governing Body: The Tea Board of India is responsible for the development and promotion of the tea industry within the country.