21 October 2021, New Delhi: In the past few years, tea production in India has risen substantially. This brings to the fore the great potential to export significantly in the world market while taking advantage of high-quality tea availability in India.
For instance, India exports more than US$ 225 million worth of tea to Iran every year, which is India’s largest market. Iran, Russia, the US, the UK, and UAE are among the top five buyers of Indian tea. There is an emerging need to increase market share in traditional markets such as Russia, the US, Iran and the UAE as well as tap into potential markets including Iraq, Syria, Libya, Turkey, Chile, Bangladesh, Thailand and Afghanistan by preferential trade agreements and other trade agreements.
The recent support from the government of India in the form of incentives to produce more orthodox teas, remission of duties and taxes on export products, freight equalisation incentives, among others, are helpful to reduce the cost of production.