India is one of the several major tea producing centres of the world with tea produced in the

country being one of the finest in the world. One of the oldest industries, the Indian tea
industry has a large network of retailers, distributors, producers, packers, exporters and
auctioneers. The reasons behind the popularity of Indian tea are not far to see Indian tea
owe its greatness to a host of factors from a great geographical spread, strong investments
in tea processing facilities, calculated market development, constant innovation to a mix of
high quality products.
Out of the over 4 billion kg of tea that is produced all over the world, India produces about 1
billion kg of the beverage. The main tea-producing regions in India are Northeast India,
North Bengal and South India. Being the 2nd leading producer of tea in the world, it has
recorded a production of 1,197.18 million kg for the time period of 2014-15. While 955.82
million kg was produced by tea estates in North India about 241.36 million kg was produced
by tea plantations in South India.
Apart from being a leading producer, the country is also home to one of the biggest tea
markets with about 3/4th of the produce consumed by the domestic market. It has the
world's largest black tea market with domestic consumption being in the 911 million kg mark
during 2013-14. In terms of exports, India occupies the 4th position and for the time period
from 2014-15 saw 199.0 million kg of tea being exported with CIS countries being the
biggest importers. The share of CIS countries in Indian tea exports for 201415 has been
recorded to be 22.4% with Iran, the UK, the US, Germany and the UAE being the other
export destinations for the country.
When it comes to volume figures for 2014-15 for the varied export destinations, the Russian
Federation recorded 39.14 million kg; UK stood at 18.58 million kg and Iran recorded 17.53
million kg of Indian tea imports. With regards to export value, the Russian Federation
recorded $ 94.43 million; Iran recorded $75.73 million; and the UK reported $57.74 of export
value. Although tea production in the country has grown at a CAGR of 3% over the last
decade, tea exports have remained relatively stagnant due to an increase in local
consumption on top of rising competition from other tea-growing nations.
According to the latest data, about 563.98 thousand hectares of land in India falls under tea
production. The state that leads the country in tea production is Assam with about 304.40
thousand hectares being used for producing tea; West Bengal occupies the 2nd spot with
about 140.44 thousand hectares under tea production; Tamil Nadu holds the 3rd position
with 69.62 thousand hectares and Kerala the 4th with 35.01 thousand hectares under tea
cultivation. According to ASSOCHAM, Assam represents about 12% of the yearly global tea
supply as well as produces over 50% of Indias tea
.
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