India records highest ever tea production in 2015-16; exports surpass 230 million kgs after a long gap of 35 years

The total tea production registered an increase of 35.96 million kgs which is 3% more than last year.

Indian tea achieved another milestone during the financial year 2015-16 when it registered export figures of 232.92 million kgs valued at Rs. 4493.10 crore, surpassing the 230 million kgs mark after 35 years. During 1980-81, India had exported 231.74 million kgs. Prior to that, during 1976-77 and 1956-57, India exported 242.42 and 233.09 million kgs respectively.

As compared to the financial year 2014-15, the quantity of tea exports increased by 33.84 million kgs (17%), while in value terms, the increase is to the tune of Rs. 669.46 crore (17.51%).

Increase of tea exports were registered mainly to Russia, Iran, Germany, Pakistan, Bangladesh, UAE and Poland.
The increase in production of tea was mainly attributable to North India where increase in production is by 52.74 million kgs (5.52%). However, production in South India declined by 16.78 million kgs (-6.95%) due to adverse climatic conditions and labour issues in Kerala.

The all-India production of tea estates increased by 1.62%, while the production of the Bought Leaf Factory (BLF) sector increased by 5.81%, which indicates increase of small tea growers’ share in production. It also shows that about 33.85% of the total tea production is being contributed by small growers. Among the major tea growing states, the share of small growers to the production is highest in Tamil Nadu (53.16%) followed by West Bengal (40.4%) and Assam (27.55%). However, Assam remains at the top in tea production followed by West Bengal and Tamil Nadu.

Of the total tea production, CTC tea constitutes 90.93% or 1121.35 million kgs, which increased by 23.19 million kgs, compared to last year. Orthodox production constitutes 7.51% or  92.60 million kgs, which shows an increase by 8.47 million kgs as compared to last year, while green tea production constitutes 1.56% and stood at 19.19 million kgs, increasing by 4.30 million kgs.

The average price realisation and quantity sold at tea auctions throughout India also registered an increase of 8.05% and 17.82% respectively as compared to the last financial year, according to a Tea Board press release. Quantity sold in North India auction centres increased by 39.31% with an increase of 3.27% in average price realised while quantity sold in South India auction centres increased by 26.22% with an increase of 29.01% in average price realised. It may be noted that the Tea Board has introduced the provision of selling of at least 50% tea produced by the registered manufacturers through the auction system by its notification dated Oct 1, 2015.