India's tea exports came under pressure in April due to the US-Iran hostilities, but the Tea Board remains hopeful of matching last year's shipment in this fiscal if the geopolitical situation improves and efforts to diversify export markets fructify.

Tea Board Deputy Chairman C Murugan said India exported 282.11 million kg of tea in 2025-26, a seven per cent rise over the previous year, with the Middle East accounting for nearly 115 million kg of those shipments.

However, exports witnessed a slowdown in recent months due to geopolitical uncertainties in some of India's major markets.

"In April, we saw a 3-4 per cent decline in export volume. Geopolitical issues are affecting exports in a few of our key markets," an official said.

Tea exports during the January-March quarter of 2025-26 were lower by around 14 million compared to the corresponding period a year ago, which reflects the impact of disruptions in key overseas markets.

Despite the headwinds, Murugan expressed confidence that exports would recover and eventually match last year's levels if the situation in West Asia improves and market diversification efforts fructify.

"The decline in exports has been seen only in recent months. We remain hopeful that exports will reach last year's level if the Middle East situation improves," he told reporters.

While export volumes have softened, earnings have remained resilient due to higher value addition and improving auction prices.

"Our exporters are adding value through packaging and processing. Because of that, there is growth in terms of value realisation," he said.

Officials said a strong recovery in orthodox tea auction prices has also supported better price realisation during the current fiscal, indicating better exports in the coming months.

The industry also started the current fiscal on a positive note, with tea production in April rising to 104 million kg from 99 million kg in the corresponding month last year.

Joint Secretary in the Department of Commerce Amit Kumar said the recently firmed up free trade agreements and trade understandings with several countries and blocs are expected to support India's goods and services exports, including tea, in the coming years.

To reduce dependence on traditional markets, the Tea Board has intensified efforts to promote Indian tea in newer destinations, particularly China, African countries and some other non-traditional markets.

"In China, Indian teas are getting popular. Our embassies are asking us to undertake promotional activities, and we are planning them," Murugan said.

Exports to China rose sharply to 18.3 million kg in 2025-26 from 11.6 million kg in the previous fiscal.

Industry officials, however, cautioned that diversification can only partly offset any prolonged disruption in West Asia, which remains one of India's largest tea-consuming regions. Concerns over regional conflicts and shipping through the Strait of Hormuz have added to uncertainty in recent months.

To offset distress in the Darjeeling tea sector, the Tea Board proposed a special component under an upcoming Expenditure Finance Committee (EFC) proposal specifically for replanting in the Darjeeling tea industry.

"We have included a special sub-component for replanting and promotion of the heritage tea industry," he said, adding that the proposal is awaiting government approval.

About tea imports, which are apparently hurting the Indian tea industry, Murugan said the Tea Board has introduced stricter quality checks to ensure imported tea meets Indian standards.

"We have started 100 per cent checking of all tea entering India, including from Nepal," he said.

The measure is aimed at protecting consumers and maintaining quality standards for tea imported for domestic consumption as well as for blending and re-export, Murugan added. PTI BSM NSD

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