Tea Board mulls taking delegation to U.S., Chile

India eyes larger slice of the U.S. market with speciality teas

KERALA, KOCHI, 25/10/2013. A plantation worker plucking tea leaves on a plantation in Valparai near Pollachi in Tamil Nadu on October 19, 2013. Tea production in India is expected to grow by around 5 per cent this year and is likely to end above 1,180 million kg due to adequate rain. Tea exports have picked up. according to Tea Board data, tea production in the country was pegged at 1,126 million kg, during January-August, tea production rose by 6.2 per cent to 705 million kg as compared to 664 million kg during the corresponding period of last year. Photo: K. K. Mustafah

The Tea Board is planning to take a delegation to the U.S. to participate in the 63rd Summer Fancy Food Show next month. The delegation would then go to Chile.

The New York food show is a major food and beverage exposition which is held for three days from June 25 to 27. Buyer-seller meets and tea-tasting sessions would be the major highlights of these promotional events.

‘Health drink’

The U.S. is beginning to emerge as an important market amid a Tea Board of India campaign to highlight the beverage as a health-drink. Exports to U.S. increased to 14.3 million kgs in 2016-17 against 14 million kgs a year ago, with an increase in unit price.

Sources said that U.S. was a 130-million-kg market mainly serviced by Argentina. India was now aiming for a bigger slice of this market with its offerings of speciality teas like orthodox, Darjeeling and green tea. Majority of the tea is consumed in that country as iced beverage using tea bags. Chile on the other hand is a virgin market for India where tea exporters are seeking an entry leveraging the friendly relations between the two countries. India closed 2016-17 with exports of 222.9 million kgs, which was nearly 5 % lower than the 232.9 million kgs exported in 2015-16. However with improved prices the value of this tea was higher at ₹ 4535.4 crores against last fiscal’s ₹4493 crores Although unit price had increased overall value had shrunk in dollar ters in wake of the rupee depreciation. A bumper crop in Kenya and lower exports to some of the key markets were the main reasons behind the dip in exports, sources said. Tea Board deputy chairman S. S. Sarangi said the lacklustre international demand for tea had also contributed to the lower exports.

However, for India, the USA is beginning to emerge as an important market, amid a Tea Board of India campaign to highlight the beverage as a health-drink. Exports to USA increased to 14.3 million kgs in 2016-17 against 14 million kgs a year ago, with an increase in unit price.

Sources said that USA is a 130 million kgs market, which is mainly serviced by Argentina. India is now aiming to take an increased slice of this market with its offerings of speciality teas like orthodox, Darjeeling and green tea. Majority of the tea is consumed in that country as an iced beverage using tea bags.

Chile on the other hand is a virgin market for India , where tea exporters are seeking an entry leveraging the friendly relations between the two countries.