As per the Tea Board of India, India is the 2nd largest producer of tea and the largest tea consumer all across the globe. India is one of the world’s largest consumers of tea with approximately 70-80% of the tea produced consumed by the domestic market. The tea industry in India is tremendously growing attributed to strong geographical indications, heavy investment in tea processing units, continuous innovation, and market expansion. A survey was conducted by the Tea Board of India, to understand the consumption pattern of tea in the country. The main tea-growing regions are in the Northeast (including Assam) and north Bengal (Darjeeling district and the Dooars region). Tea is also grown on a large scale in the Nilgiris in South India. As per the survey, it was concluded that around 32% of the total consumption of tea in the country is from Northern states and the Western region accounts for 31% of the total consumption. North East region accounts for only 19% of the total consumption whereas Southern states account for only 18% consumption. It was found in the survey that nearly 88% of the total household consumption of tea in the country and overall, 64% of the total population is a tea-drinking population in the country. 

PRODUCTION OF TEA IN INDIA, 2014-2018 (MILLION KG)

As of 2019, India was the second-largest tea producer in the world with a production of 1,339.70 million kgs. From January 2020 to February 2020*, the estimated production of tea stood at 30.54 million kgs. In 2018, around 1.38 million tons of tea were produced in the country with a flat growth rate.  The country has more than 566,000 hectares of area under tea production led by Assam, West Bengal, Tamil Nadu, and Kerala respectively. North India is the major producer of tea in the country. North India produced 1.11 million tons of tea in 2018 whereas South India produced 0.22 million tons of tea in the same year. India is the major exporter of tea globally. Some of the major export markets of the country in volume terms include the Russian Federation, Iran, and UAE with around 48 million kg, 31 million kg, and 21 million kg in 2017-2018 respectively.

Key Markets and Export Data

• Total tea export stood at $830.90 million in FY2019 and $826.47 million in FY2020.
• India ranks fourth in tea export after Kenya, China, and Sri Lanka.
• The total tea export was $501.16 million from April 2020 to November 2020 and for November 2020 it was $71.61 million.
• Some of the major exporters of the country include Mcleod Russel India Ltd., Bhansali & Co., Girnar Food & Beverages Pvt. Ltd., Limtex (India) Ltd., Ambo Exports Industries Ltd., and so on.