Tea imports rise: Global demand boosts after exports hit 15-year low

- Bhoo Bazar : Dilip Shah

- South Korean buyers enter the tea market: there are signs of increasing exports to Iran and the Middle East as well

The equations in the tea market and industry in the country have been seen to turn rapidly recently. People have now forgotten about Corona and lockdown and people have been seen celebrating various festivals with enthusiasm this year as various restrictions of the government have been removed. Hotels, restaurants, public functions Vs. Now with the usual start, demand from bulk consumers has also re-entered the tea market. Meanwhile, there is a lot of discussion about this in the market as the supply of cheap tea from Nepal is coming to the country. According to the planters and producers who produce Darjeeling tea in the country, the war between Russia and Ukraine has had the most negative impact on European countries. And this has adversely affected the Indian tea market, especially the European demand for Darjeeling tea. Domestic demand for Darjeeling tea has also slowed down recently, market sources said that the purchase of Darjeeling tea by many major consumer product companies has been slow. In Adhura, more supply of cheap tea from Nepal has also been seen pouring into the Indian markets. The dominance of India's Darjeeling tea at home and in the global market has faded recently and market insiders fear that Darjeeling tea will go down in history if no serious efforts are made to address this issue. While the production cost of Darjeeling tea remains high, its market price has recently fallen to around Rs.320 to Rs.330 per kg, which has led to widespread panic among the planters who grow Darjeeling tea.

According to tea market informants, about 68 to 70 lakh tonnes of Darjeeling tea is produced in the country every year, although the total annual production of various teas in the country is about 130 crore kg. In view of this, the share of Darjeeling tea production in the total production of tea has been significantly less, although such tea has been highly appreciated in the country and abroad.

India's Darjeeling tea is especially consumed in Europe and Japan, besides, large packagers of this tea at home are also roaming in the market as buyers. However, the picture has changed recently. Due to the collapse of such tea prices, the owners of Darjeeling tea plantations grown at high cost of production are now in trouble. Meanwhile, the import of tea has also increased to around 64 to 65 lakh kg in the three months of April to June this year. Last year also, 63 to 64 lakh kg of imported tea came to India during this period. In the entire year of 2021, approximately 265 to 266 lakh kg of imported tea arrived in the country. While in 2020, such import was 237 to 238 lakh kg. In the first 6 months of this year, this figure has been recorded as 123 to 124 lakh kg. Imports from Nepal have increased, while the import cost of imported tea remains low compared to the cost of production of tea grown in the country, and the income from imported tea has increased dramatically among planters growing tea in the country. More than 50 thousand farm laborers work in about 85 to 90 tea gardens in Darjeeling. Meanwhile, recently there has been news of South Korea's Biro visiting India's tea garden. Representatives of the government-owned Tea Board held a meeting with the Bureau of Korea. Biro from South Korea visited various tea gardens at Coonoor in South India. Market experts were showing the possibility of increasing tea exports from India to South Korea after this visit. The South Korean buyers were also directed to visit various tea producers producing value-added tea. Before this, the South Korean buyers had also visited the tea gardens of North India. In South Korea, however, high import duty has been recorded on the import of tea and due to this the export of tea from India to South Korea has been slow. If South Korea reduces such duty, the export of tea from India to South Korea can be increased. Coffee is currently consumed more in South Korea and now consumers there are also trying to switch to tea instead of coffee. Tea exports from India have fallen to a 15-year low in 2021. However, market sources said that the demand for Indian tea from Iran and Middle-Eastern countries has increased this year.