Climate Change Brews Trouble for India's Tea Industry Amid Export Surge

India's tea industry faces a significant drop in production due to erratic weather and early garden closures, raising costs for planters. Despite this, the industry benefits from better price realisation and increased exports, notably to Iraq. Mitigation strategies include enhancing soil health and rainwater harvesting.

The Indian tea industry is grappling with a severe decline in production, projected to fall by over 100 million kg by year-end due to erratic weather and early garden closures, stakeholders revealed on Monday. These factors have led to an increase in the cost per kg for planters.

Despite these challenges, the year observed better price realisation and growing exports, with shipments expected to touch 240-250 million kg in 2024, surpassing last year's 231 million kg. Exports to Iraq have notably surged, accounting for 20% of total tea exports.

Climate change is cited as a major woe for decreased crop output, prompting the Tea Research Association to advocate for soil health enhancements and rainwater harvesting. The industry is optimistic, anticipating strong tea prices due to reduced production and low carryover inventory supporting demand.

(With inputs from agencies.)