India’s tea exports scaled a record high in 2025, signalling resilient global demand for the country’s produce despite geopolitical uncertainty and volatile trade conditions. Shipments rose 9.5 per cent year-on-year to 280.4 million kg (mkg), up from 256.17 mkg in 2024, offering a rare boost to the plantation sector grappling with rising costs and price fluctuations.
Iraq tops export destinations
Iraq emerged as the single largest destination for Indian tea, accounting for just under one-fifth of total exports. The United Arab Emirates followed closely, although industry sources believe a portion of the consignments routed through the UAE were re-exported to markets such as Iran.
Confirming the record performance, C. Murugan, Deputy Chairman of the Tea Board of India, said exporters deserved credit for diversifying markets amid challenging global conditions.
China demand surges
Exports to China more than doubled to 16.13 mkg in 2025, compared with 6.24 mkg the previous year. Although China is the world’s largest tea producer and predominantly a green tea market, demand for Indian black and orthodox teas is steadily rising.
Murugan said the Tea Board plans to hold two trade shows in China this year, with strong backing from the Indian embassy, to tap the growing interest. “There is huge potential for orthodox teas in China,” he noted.
Trade policy relief in the US
Exports to the United States suffered a temporary setback after Indian tea was subjected to a 50 per cent tariff from August 27 under President Donald Trump. Shipments nearly halted before the tariff was lifted in mid-November. The Commerce Ministry has since confirmed that Indian tea now attracts zero duty in the US.
Outlook for 2026
Looking ahead, the Tea Board is targeting new markets in North Africa, including Morocco, Algeria and Tunisia, where consumption is high but Kenyan tea dominates due to lower prices. Afghanistan has also been identified as a focus market.
Mohit Agarwal, Director of Asian Tea Company, said India could touch 300 mkg in exports in 2026 if food safety compliance improves. However, concerns remain over tighter pesticide residue norms proposed by the European Union, which could affect shipments to the EU and UK—together accounting for over 10 per cent of exports.
Industry observers warn that unless regulatory challenges are addressed through government support and trade negotiations, losses in Europe may need to be offset through gains in emerging markets.