India likely to face hurdles in meeting 300-mn-kg tea export target

Today, CTC accounts for 90.1% of the total production of 1,300 million kg

India’s dream of hitting the tea export target of 300-million-kg in the next three years, which is expected to generate Rs 70 billion, may remain unfulfilled as tea companies continue to face subsidy and incentive challenges.

According to the Indian Tea Association (ITA), the huge trade deficit with certain key partners is compelling the commerce ministry to push for an aggressive export strategy on favourable currency terms. 

Hence, while India’s import bill in US dollar terms continues to remain high, the government is seeking to bill countries in rupee terms for primary commodities like tea.

“It is imperative that tea