Border Tensions Between India & China Have Not Affected Indian Tea Exports to China
China and India are the largest tea producing nations in the world. These two powerful nations may have some political issues, but it has very minimum influence on tea trade between these two giants. As The Economic Times had reported, Indian tea exports to China and Iran have gone up despite the economic uncertainty due to Covid-19 outbreak and the standoff between India and China on border issues. Chinese importers are giving good prices for Indian black tea and shipments to the country have already begun.
Mr. Mohit Agarwal, director, Asian Tea mentioned “Border tensions between the two countries have not affected exports of tea to China and The Chinese are buying both CTC and orthodox black teas.”
In 2019, India overtook Sri Lanka (Ceylon) in exports of tea to China riding on the increasing demand for black tea among Chinese millennials. India had exported 13.45 million kg of teas to China, whereas Sri Lanka, which had always been the leader in exports to China, was able to export 10 million kgs.
Indian tea production has already gone down by 140 million kg due to the lockdown this year. Even the weather has not been favourable in May and June in Assam as there has been excessive rains, likely impacting overall production.
Last year, India produced 1,389 million kg of teas.
Other than that, Iran has also started importing new season orthodox teas from last two week and is paying Rs 400 – Rs 450 per kg (USD 5.3 – 6.0), a price higher than that of last year.
So this is in deed a good news for Indian Tea Industry.
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