Introduction
Tea is the most widely consumed drink in the world, after water 1. Tea comes in many types and
different consuming habits with different tastes. It is prepared in hot or cold water over cured
leaves of the Camellia sinesis, which is an evergreen shrub. Its origin and drinking can be dated
back to the 3rd century AD, during the Shang dyanasty as a medicinal drink2. Later, drinking tea
spread over the other East Asian countries and Portuguese priests and merchants, during the
16th century introduced it to Europe3. It was very much liked by British, which resulted in
commercialization of it and large scale production was started in India4.
Types of tea:
Although all types of tea originate from the same basic plant, the Camellia Sinensis, The
differences arise from processing, growing conditions, and geography. Tea plant is native to
Asia, but is cultivated around the world in tropical and subtropical areas nowadays. It has over
3000 varieties, but mainly divided into seven categories5.
a. Black tea: characteristically dark brown and black leaf, higher caffeine content ( 50-
65%), because of oxidation during withering process.
b. Dark tea: It is from Hunan and Sichuan provinces of China and is a flavorful and aged
form of tea. It has a unique way of brewing which is more than 400 years old6.
c. Oolong tea/wulong tea: it goes partial oxidation, have a caffeine content between that of
green teas and black teas, has extremely fragrant and intriguing tones and often
compared to the taste and aroma of fresh flowers or fresh fruit5.
d. Green Tea: Slightly withered after being picked. Then the oxidation process is stopped
very quickly, have less caffeine (10-30% of coffee) and subtle flavors5.
e. White Tea: Most delicate of all teas. Appreciated for their subtlety, complexity and
natural sweetness. Hand-processed using the youngest shoots of the tea plant, with no
oxidation5.
f. Puer/Pu-erh Tea: used in China for medicinal purposes. It is a form of fermented tea
produced in the Yunnan Province of China. Fermentation process uses microbial
fermentation and oxidation of the leaves7. It has a very strong with an incredibly deep
and rich flavor, and no bitterness5.
g. Yellow Tea: it is a rare category of tea similar to green tea in appearance and flavor.
Although lacking the grassiness of some green teas it goes through more oxidation than
green teas and a longer, slower drying period. All yellow teas come from China5.
Black tea Dark tea
Oolong tea/wulong tea Green tea
White tea Puer/Pu-erh Tea
Fig 1: Types of tea
Yellow tea
Fig 1: Types of tea
(Source: https://www.teasource.com.)
Global Tea Scenario
36 countries all over the world grow tea. The global tea production and consumption during
2017 was 5812 million kg and 5571 million kg respectively. Total exports from producing
countries was 1796 million kg during 2017. Major tea producing and exporting countries China,
India, Kenya and Sri Lanka account for 76% world production and 73% world exports8.
Country Production Export
Million Kg Global Share Million Kg Global Share
China 2609 45 355 20
India 1322 23 252 14
Kenya 440 8 416 23
Sri Lanka 308 5
Others 1133 19
World total 5812 100 1796
Table 1: Production and Export share of major producing and exporting countries during 2017
(Source: Tea Board India, 64th annual report 2017-2018)
Figure 2: Production and export share of major tea producing countries 2017
(Source: Tea Board India, 64th annual report 2017-2018)
Table 2: World Auction price of tea (in US$/kg)
(Source: Tea Board India, 64th annual report 2017-2018)
It is evident from the table that India ranks fourth in auction price for tea in 2016 as well as in
2017. The auction price has marginally increased in 2017(2%) but auction price of other nations
increased significantly like Sri Lanka(26.86%), Kenya(22.71%), Limbe a city in
Cameroon(18.71%).whereas auction price of Bangladesh decreased(-3.92%)
Production
Total tea production increased by 238 million kgs in 2017 compared to 2016. Tea production
increased in all leading countries except Kenya, China with highest share.
Table3: Tea production in Major tea producing countries
(Source: ITC Annual Bulletin of Statistics, 2017)
Exports
Global exports decreased by 7 million kgs in 2017 then 2016. China and India increased their
export in contrast to decrease in exports of Kenya and Sri Lanka.
Table 4: Exports of major producing countries (million kgs)
(Source: ITC Annual Bulletin of Statistics, 2017
N.B. Kenya’s export includes the neighboring African countries produce)
Tea prices
The international tea prices were higher in 2017 then 2016. But Indian price decreased due to
record crop and Bangladesh’s can be attributed to over stock.
Table 5: tea prices during 2017 in respective currencies per kg
(Source: ITC Annual Bulletin of Statistics, 2017)
Indian Tea Scenario
15 states in India are involved in tea cultivation. Assam, West Bengal, Tamil Nadu and Kerala
are major tea growing states and account for 98% of total production8. Some traditional states
where tea is grown are Tripura, Himachal Pradesh, Uttarakhand, Bihar and Karnataka. Other
nontraditional states which entered into tea cultivation are Arunachal Pradesh, Manipur,
Meghalaya, Mizoram, Nagaland and Sikkim.
Production
There has been consistent production in tea in India as well as globally. Before 2017, apart from
2013, India’s production was less then world’s production. But in 2017, the year when
production record was set up, India’s percentage production beat world percentage production
by a significant margin.
India World
Year Production(M. Incremental Percentage Year Production(M. Incremental Percentage
kg) increase in increase in kg) increase in increase in
production(M.kg) production production(M.kg) production
2012 1126 2012 4693
2013 1200 74 6.57 2013 5001 308 6.56
2014 1207 7 0.58 2014 5209 208 4.16
2015 1209 2 0.17 2015 5285 76 1.46
2016 1267 59 4.8 2016 5574 289 5.47
2017 1322 55 4.34 2017 5698 124 2.22
2018(P) 1339 17 1.29 2018(P) 5883 185 3.25
Table 6: Tea production in India versus World
(Source: www.indiatea.org)
Imports
India’s tea import is more or less consistent throughout the years, which can be attributed to
huge domestic production. Globally also the volume of imports is consistent more or less.
India World
Year Imports(M. Incremental Percentage Year Imports(M. Incremental Percentage
kg) increase in increase in kg) increase in increase in
Imports(M.kg) Imports Imports(M.kg) Imports
2012 21 2012 1665
2013 20 -1 -4.76 2013 1735 70 4.2
2014 21 1 5 2014 1741 6 0.35
2015 19 -2 -9.52 2015 1721 -20 -1.15
2016 21 2 10.53 2016 1735 14 0.81
2017 20 -1 -4.76 2017 1727 -8 -0.46
2018(P) 20 0 0 2018(P) 1738 11 0.64
Table 7: Tea imports in India versus World
(Source: www.indiatea.org)
Exports
India’s tea export is more or less consistent throughout the years, this happens due to huge
number of consumers in domestic market. Globally also the volume of imports is consistent
more or less.
India World
Year Exports(M. Incremental Percentage Year Exports(M. Incremental Percentage
kg) increase in increase in kg) increase in increase in
Exports (M.kg) Exports Exports (M.kg) Exports
2012 208 2012 1775
2013 219 11 5.29 2013 1861 86 4.85
2014 207 -12 -5.48 2014 1826 -35 -1.88
2015 229 22 10.63 2015 1798 -28 -1.53
2016 223 -6 -2.62 2016 1803 5 0.28
2017 252 29 13 2017 1796 -7 -0.39
2018(P) 256 4 1.59 2018(P) 1863 67 3.73
Table 8: Tea Exports in India versus World
(Source: www.indiatea.org)
Consumption
The consumption of tea is growing in India as well as the world which is a very positive sign for
the industry.
India World
Year Consumption Incremental Percentage Year Consumption Incremental Percentage
(M. kg) increase in increase in (M. kg) increase in increase in
Consumption Consumption Consumption Consumption
(M.kg) (M.kg)
2012 944 2012 4538
2013 966 22 2.33 2013 4702 164 3.61
2014 989 23 2.38 2014 4879 177 3.76
2015 1012 23 2.33 2015 5035 156 3.2
2016 1035 23 2.28 2016 5283 248 4.93
2017 1059 24 2.32 2017 5488 205 3.88
2018(P) 1084 25 2.36 2018(P) 5615 127 2.31
Table 9: Tea Consumption in India versus World
(Source: www.indiatea.org)
Assam Tea Scenario
Tea gardens of Assam are mostly in Dibrugarh, Tinsukia, Sibsagar, Jorhat,Golaghat, Darang
and Sonitpur. Tea is grown mainly in low lying plans of Barak and Brahmaputra.Assam mostly
produces black tea along with small quantities of green and white tea. Assam accounts for more
than 50% of country’s total area under tea and 52% of country’s production. It gives
employment to more than 6.86 lakh persons in the State, which is around 50 percent of the total
average daily number of labour employed [on an average 11.1 lakh labour employed per day] in
the country under Tea Industry9. The production can be attributed to 84591(2006 data) Small
Tea Growers with 82251 hectares of land coverage in Assam 9.
Production
Assam produces more than 50% of tea produced in India, this can be largely attributed to the
contribution of small tea growers which are comprised of mainly educated unemployed youths.
They contribute not only to the production of tea, but also economy of the state as well as the
country.
Table 10: Tea statistics of Assam and India
(Source: Economic survey of Assam 2017-18)
Price
The Guwahati Tea Auction Centre is actively taking part in trading of the Tea produced mainly in
the North-eastern States since its establishment. Statistics of quantity and average price of tea
sold in the Guwahati Tea Auction Centre is shown in the table below.
Table 11: Quantity and average price of tea sold in Guwahati tea auction centre
(Source: Guwahati tea auction centre)
