The exporters of the beverage consequently foresee a 10 per cent or more drop in shipments in the current fiscal after a growth of 18 per cent in 2022.
Tea shipments during the January-August period in 2021 stood at 122.18 million kilograms (mkgs).
Orthodox tea, much preferred for exports, currently accounts for around 10 per cent of the country’s total tea production that stood at 1,343 million kg in 2021.
Indian Tea Exporters’ Association (ITEA) chairman Anshuman Kanoria said everything is uncertain and premature in the context of the conflict.
Western sanctions and disruption of payments in dollars as well as transhipments to Russia are expected as a fall-out of Russian troops launching an attack on Ukraine on.
According to industry experts, the decline in exports could be attributed to shortage of containers, high ocean freight and less offtake by the lucrative Iran market due to payment issues.
While south Indian tea is hit by the rains, the bane of Darjeeling tea is the cheap tea imported from Nepal being passed off under its label. Increasing freight rates, container shortage and lack of incentives have hit exports. Tea growers are now pinning hopes on good weather in the coming months.
Export realisation in the last financial was USD 785.92 million. In 2016-17, export realisation was USD 95.19 million lower, the statement said.
Indian tea exports to Australia stood at 3 million kg and considering the demand for more specialist and premium teas, the Board is eyeing to double it in the next five years, Executive Director of Tea Board, Coonoor, C Paulrasu, told reporters here.
In terms of quantity too, the export declined to 11.80 million kg in April from 12.07 million kg in April 2015, according to the Tea Board data.
Total exports to the neighbouring country stood at Rs 89.46 crore in the first nine months of the previous fiscal, according to Tea Board data.
The provisional tea exports data released by Tea Board of India has pegged exports of the beverage at 119.25 million kgs, valued at Rs 2,318.07 crore during 2015-16 (April-October), while the export during the corresponding period last year was 111.19 million kgs, valued at Rs 2,224.54 crore.
Tea exports from India fell by 20 percent to 81.85 million kg in the first six months of the current fiscal due to drop in outbound shipments of the brew from North and South India, latest Tea Board data said.
In an interview with CNBC-TV18, Kamal Baheti, CFO of Mcleod Russel said that trying to sustain last year's 28% margin would be a challenge since tea is a seasonal industry.
India's tea imports dipped by almost 18% in April-May this year to 2.31 million kg, Tea Board data shows. The country had imported 2.81 million kg of tea in April-May, 2010, the data said.
Tea exports from North India rose by 30% to 4.8 million kg in May 2011 on the back of increased demand from overseas markets and a decline in production in Kenya.
Tea exports from South India fell by almost 14% to 6.43 million kg in May, 2011, as it is facing competition from East African tea-producing countries like Kenya, according to industry analysts.