Trace the evolution of India's tea export performance and analyze the factors behind India's declining competitiveness relative to other tea-exporting nations.

Q. Trace the evolution of India's tea export performance and analyze the factors behind India's declining competitiveness relative to other tea-exporting nations. (15 marks, 250-350 words)

India is the world's largest producer and consumer of black tea and the second-largest tea producer, yet ranked only the third-largest exporter in 2024 [1]. This gap between record output and modest export rank defines the competitiveness question.

Evolution of export performance - Colonial origins: commercial plantations began in 1830s Assam as an export-oriented enterprise; tea was among India's premier foreign-exchange earners till the 1970s, when peak output was barely a third of today's level. - Post-liberalisation plateau: a booming home market absorbed the bulk of output, shrinking exportable surplus, while Kenya, Sri Lanka and China expanded aggressively into global markets. - Recent revival: FY2025-26 saw an all-time high production of 1,382.74 million kg and record exports of 282.11 million kg worth ₹8,718.83 crore — up 7% in volume but 12% in value [1][2]. - Rising realisation: April–October 2025-26 exports touched USD 605.90 million, a 15.16% rise, signalling a shift toward value-added and premium segments [1].

Factors behind declining competitiveness - Ageing plantations: over 70% of bushes are more than 50 years old, depressing yield per hectare against Kenya's younger, high-yielding stock [3]. - High cost of production: a 1.16 million-strong direct workforce and statutory plantation welfare obligations raise unit costs above African competitors [2]. - Fragmented supply base: small growers now contribute a majority of green leaf, but weak leaf quality and price realisation dilute consistency [4]. - Bulk over brand: exports remain largely unbranded bulk tea; Darjeeling's GI, India's first registered GI, is under-leveraged commercially [3]. - Market concentration: heavy dependence on the Middle East exposes exports to geopolitical shocks, prompting diversification into China, Egypt and Canada [2]. - Stricter residue and quality norms in premium Western and Japanese markets constrain access.

India's tea story is thus one of volume strength coexisting with value weakness. Accelerated replantation under the Tea Development and Promotion Scheme, GI-led branding, orthodox and value-added processing, and market diversification can convert record harvests into durable global competitiveness [1].

(~330 words)

Sources: 1. Department of Commerce Highlights 12 Years of Transformative Growth; Tea Sector Records Historic Export Performance, PIB — record FY2025-26 production and exports, export rank, Tea Development & Promotion Scheme 2. Indian Tea Sector: Production, Trade, Welfare and Reforms, PIB — export value/volume records, 1.16 million direct workers, market diversification 3. AKAM Series #50 – Steady Increase in India's Tea Production, PIB — over 70% bushes above 50 years, Darjeeling as India's first GI product 4. Small tea growers will have the biggest role to play in shaping the future of tea sector in India: Shri Piyush Goyal, PIB — rising share and challenges of small tea growers