Tea Industry

Topics: Tea, Black tea, Camellia sinensis Pages: 27 (6262 words) Published: May 14, 2012


This paper aims at analyzing the international trade of the Indian Tea Industry. It gives a brief study about the export and import of Tea in India, and even provides a comparative study of India’s export and import of Tea. The objective is to analyze the trends of import and export in India, compare it with the leading Tea exporter and importer of the world and find the opportunities and threats of the industry in the near future.



Tea is indigenous to India and is an area where the country can take a lot of pride. This is mainly because of its pre-eminence as a foreign exchange earner and its contributions to the country's GNP. In all aspects of tea production, consumption and export, India has emerged to be the world leader, mainly because it accounts for 31% of global production. It is perhaps the only industry where India has retained its leadership over the last150 years, along with China whose precise numbers are not published.

Tea in India is grown primarily in Assam, West Bengal, Tamil Nadu and Kerala. Apart from this, it is also grown in small quantities in Karnataka, HP, Tripura, Uttaranchal, Arunachal Pradesh, Manipur, Sikkim and Meghalaya. India primarily has a dual tea base, unlike most other tea exporting countries. Both CTC and Orthodox tea is produced in India, along with Green and Oolong tea with comparatively lesser production.

It is an agro based and labour intensive industry. It provides direct employment to over 1 million persons. Through its forward and backward linkages another 10 million persons derive their livelihood from tea. In Northeast India alone, the tea industry employs around 900,000 persons on permanent rolls.

The Tea Industry is one of the largest employers of women amongst organised industries in India. Women constitute nearly 51% of the total workforce

The three most distinct known varities of tea in India are:
• Assam Tea (grown in Assam and other parts of North East India) • Darjeeling Tea (grown in Darjeeling and other parts of West Bengal) • Nilgiri Tea (grown in the Nilgiri Hills of Tamil Nadu)

Scope and Objectives

The scope of this project will be limited to the export of Indian CTC and Orthodox tea to the following markets: • CIS countries
• United Kingdom and Europe
• Middle East

This project is intended towards studying the Indian Tea Industry in detail, what has been the export and import over the years, what has been the contribution of Tea exports to total exports of the country as well as the future prospects of Indian Tea in the global arena.


Indian Tea Industry

Tea is an agro-based commodity and is subjected to vagaries of nature. Despite adverse agro climatic condition experienced in tea growing areas in many years, Indian Tea Plantation Industry is able to maintain substantial growth in relation to volume of Indian tea production during the last one decade.

Tea is an essential item of domestic consumption and is the major beverage in India. Tea is also considered as the cheapest beverage amongst the beverages available in India. Tea Industry provides gainful direct employment to more than a million workers mainly drawn from the backward and socially weaker section of the society. It is also a substantial foreign exchange earner and provides sizeable amount of revenue to the State and Central Exchequer. The total turnover of the Indian tea industry is in the vicinity of Rs.9000 Crs.

Source: http://www.indianembassy-tm.org/index.files/india%20tea%20industry%20intro.pdf


The tea industry in India is about 172 years old. It occupies an important place and plays a very useful part in the national economy. Robert Bruce in 1823 discovered tea plants growing wild in upper Brahmaputra Valley. In 1838 the first Indian tea from Assam was sent to United Kingdom for public sale. Thereafter, it was extended to other parts of...
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