Surge in Tea Imports Raises Concerns in India's Tea Industry

Tea imports from Kenya to India surged by over 288% in 2024, fueling apprehensions in the domestic tea industry about the potential blending and re-exporting of cheap and lower-quality African teas under the guise of premium Indian tea. 

From January to October 2024, India imported 13.71 million kilograms of tea from Kenya, exacerbating the country's ongoing issue of over-supply.

According to Dinesh Bihani, Secretary of the Guwahati Tea Auction Buyers Association, the imports are predominantly sourced from the Mombasa auction, which includes teas not only from Kenya but also from other African countries like Burundi, Uganda, Tanzania, and Malawi. 

These teas are often priced significantly lower than Indian teas, making them attractive to buyers despite their potentially inferior quality.

The influx of imported teas adds to the challenges faced by Indian tea producers, who are struggling to maintain market stability and uphold the reputation of Indian tea, said Mr Bihani.

Concerns Over Old Stock and Blending Practices

Industry insiders suggest that some of the imported teas from Mombasa might consist of old stock, as a significant amount of unsold tea has reportedly been lying idle at Mombasa port. These teas, once imported, could potentially be used for blending and re-export, raising concerns over their impact on the branding and authenticity of Indian tea.

To address these issues, teas imported without paying import duty for re-export purposes must be stored in government-designated zones like Export-Oriented Units (EOU) and must be shipped out within 120 days. Additionally, the origin and blend components must be clearly marked, ensuring transparency and compliance with international trade norms.

Import Trends: CTC, Orthodox, and Nepalese Teas

In 2024, India imported both CTC (Crush, Tear, Curl) and Orthodox tea varieties. While Kenyan teas dominate the import landscape, India also imports significant quantities of tea from Nepal under the SAARC treaty. The influx of Nepalese tea further adds to the competitive pressures faced by Indian producers.

Implications for India's Tea Industry

The surge in tea imports, coupled with regulatory and market challenges, underscores the need for a balanced approach to safeguard the interests of Indian tea producers while meeting global trade obligations. As the world's largest consumer of tea, India must ensure that its domestic industry remains competitive, sustainable, and true to the legacy of Indian tea.