India losing tea export market to Sri Lanka, Kenya

With a steady rise in tea consumption in the domestic markets, India is losing its share in tea export markets to these two countries.

The largest producer of black tea in the world, India is losing ground to other tea exporting countries such as Sri Lanka and Kenya, Western Tea Dealer's Association (WITDA) expressed its concerned today.

 

Tea exports from India has come down from 200 million kgs in 1998 to 157 million kgs in 2007. The industry player also estimates that in 2008, exports will maintain a status quo.

"As far as tea exports are concerned we are losing out to Sri Lanka and Kenya," opined Piyush Desai, chairman of WITDA. Till now Pakistan used to procure tea directly from India but recently it has turned to Sri Lanka. "We have also lost market to some extent in Europe.

Currently, Russia is one country where India exports sizeable amount of tea," added Desai, who is also the chairman and managing director of WaghBakri Group.

However, tea exports to Russia have also declined to 30 to 35 million kgs in 2007 from around 100 million kgs in 1990.