According to a report published by Business Standard, according to the latest data available on the website of the Tea Board of India, in 2022, India’s tea exports will be 96.89 million kilograms, which has also driven the production of tea garden machinery, an increase of 1043% over the same period last year. million kilograms. Most of the growth came from the traditional tea segment, whose exports increased by 8.92 million kilograms to 48.62 million kilograms.
“On an annual basis, Sri Lanka’s production of tea and its tea bag has fallen by about 19%. If this deficit persists, then we expect a reduction of 60 million kilograms in full-year production. This is what the total production of traditional tea in northern India looks like”, he pointed out. Sri Lanka accounts for about 50% of the global traditional tea trade. Exports from India are expected to pick up further in the second and third quarters, which will help meet the target of 240 million kilograms by the end of the year, according to sources at the Tea Board. In 2021, India’s total tea exports will be 196.54 million kg.
“The market vacated by Sri Lanka is the current direction of our tea exports. With current trends, the demand for traditional tea sets will increase,” the source added. In fact, the Tea Board of India is planning to encourage more traditional tea production through its upcoming measures. The total tea production in 2021-2022 is 1.344 billion kilograms, and the traditional tea production is 113 million kilograms.
However, in the past 2-3 weeks, traditional tea and other tea packing materials prices have retreated from their peak levels. “The market supply has increased and tea prices have risen, causing exporters to have cash flow problems. Everyone has limited funds, which is a small obstacle to further increasing exports,” explained Kanoria.