India’s tea exports climbed to a record high in 2025, buoyed by a sharp rise in shipments to Iraq and China, underscoring resilient global demand even as geopolitical trade currents remain unsettled.
The milestone offers a rare bright spot for the plantation sector, which has grappled with volatile prices and rising input costs. Shipments rose by 9.5 per cent to 280.4 million kg (mkg) last year, compared with 256.17 mkg in 2024, despite a temporary blip in the US due to Trump tariffs.
Iraq emerged as the top destination for the Indian variety, which competes in the international market with Sri Lanka and Kenya, accounting for a little less than one-fifth of exports. The United Arab Emirates (UAE) came a close second, even as it is more likely that teas were being rerouted from the country to other regions, especially Iran.
“The credit must go to the exporters who have been able to diversify despite challenging circumstances,” C. Murugan, deputy chairman, Tea Board of India, said, confirming the record export.
In China, exports have more than doubled to 16.13 mkg from 6.24 mkg in 2024. The deputy chairman said the Board would sharpen its focus this year. “There is a huge demand for orthodox teas in China. We are going to hold two trade shows there. The embassy is very supportive of our effort.”
China, the world’s largest producer of tea, is predominantly a green tea market even as demand for black tea, produced in India, is growing.
Anshuman Kanoria, chairman of the Indian Tea Exporters’ Association, said export to China can double with promotional support from the government, stressing the need for diversification as some of India’s top export destinations are also geopolitically most volatile in the world. “With multiple trade deals in place, especially the US and EU, there will be more certainty in the trade this year, which should work to India’s advantage,” Kanoria added.
Indian teas were subjected to a 50 per cent tariff in the US from August 27, leading to export grinding to a near halt. Trump lifted the reciprocal tariff on 200-odd food items, including tea and coffee, in mid-November. Indian tea now attracts zero tariff in the US, the commerce ministry informed on Saturday.
Outlook for 2026
Apart from China, the Board is also planning to zone in on North African countries such as Morocco, Algeria and Tunisia, where tea consumption is high. Kenyan tea, cheaper than Indian produce, is popular there, but India hopes to make inroads. Moreover, Afghanistan will be another focus area this year, where Sri Lankan teas are popular, even as China remains the key focus area with big gains expected.
Mohit Agarwal, director of Asian Tea Company, said it would be possible to reach the 300 mkg target in 2026 if the industry focuses on compliance with food safety standards.
With the European Union set to enforce tighter food safety norms in relation to the use of pesticides later this year, there is apprehension among the exporters that shipments may fail the test.
“The only threat to our exports is the EU / UK, whose share is over 10 per cent of our exports. The new stringent MRL (minimum residue limit) regulations make it very difficult for our conventional teas to pass their laws. This loss would have to be made up somewhere else,” Agarwal observed.
Industry observers said that only the teas produced by organic tea gardens are likely to go through. However, only a handful of Assam gardens are organic. “The importers are already seeking compliance reports. There is a need for government intervention, given the EU FTA is being finalised,” an industry source said.
