Oversupply in global markets to hit Indian tea prices, exports

The world is faced with 100 million kg of extra tea, which may dampen Indian tea prices and exports in 2024, according to industry executives. In 2023, nearly 6500 million kg of teas were produced globally compared to 6400 million kg in 2022, with Sri Lanka and Africa being the driving force behind the surge in global tea production.

CK Dhanuka, chairman of Dhunseri Tea & Industries, said, "The excess tea in the global markets that has been carried over from last year will impact the prices and exports of Indian tea." The geopolitical tension and the rising fear of economic recession have impacted the global tea markets in 2023.

Indian tea exports in calendar year 2023 stood at 227.91 million kg, a decline by 1.37 % as compared to 2022. The unit price realisation too has fallen by 3.5% to ₹265.58 per kg in 2023 in comparison to the previous year.