Today: 30 August 2025
27 February 2022
2 mins read

Ukraine crisis may hit India’s tea industry

Experts warned that if the war is going on for a long time and more sanctions are imposed by Nato European countries then it will be very difficult for the Indian economy, especially for the tea sector.”…reports Asian Lite News

Prolonged war between Russia and Ukraine or for that matter any spill over in hostilities to other regions beyond may hurt Indian tea exports, thereby also putting extra pressure on the already declining prices of the beverage.

Russia and CIS nations are India’s largest export destination of tea and a very important market, said Dinesh Bihani, Secretary at Guwahati Tea auction Buyers association.

The Indian tea industry has been stuck in a perfect storm for the past several years on concerns such as uncompetitive prices, lack of quality crops, rising labour costs as well as subdued export demand.

:The Ministry of Internal Affairs of Ukraine has published pictures of the border service facilities in the Kyiv region that were shot by Russian troops on Thursday Feb. 24, 2022 not long after Russian troops launched their anticipated attack on Ukraine.(Photo:IANS/Twitter)

“If the war is going on for a long time and more sanctions are imposed by Nato European countries then it will be very difficult for the Indian economy, especially for the tea sector,” Bihani said. “If we lose this market then the prices of tea will further fall as there is a surplus of tea in the domestic market.”

India’s tea exports to CIS nations stood at 40.17 million kg, valued at around Rs 744 crore during the period January-November 2021, Bihani said in a note refering to the Tea Board of India data.

Of this, exports to Russian Federation stood at 30.89 million kg, estimated at Rs 558 crore, accounting for nearly 77 per cent of the total exports to the CIS.

The total export to Ukraine during the period was at 1.6 mkg (valued at around Rs 30 crore); Kazakhstan 6.25 mkg (Rs 127 crore), while to other CIS nations stood at 1.43 mkg (Rs 29 crore), he said.

Exports during the same period last year stood at 46.39 million kg, which was valued at around Rs 823 crore.

“It is to be noted that the country’s tea exports during calendar year 2021 have been impacted due to the lack of clarity over payment mechanism with Iran and the higher prices of Indian CTC (crush-tear-curl) tea compared to the Kenya counterpart.”

While actual figures are still not available, estimates suggest that tea exports from India are likely to be lower by around 12-13 per cent at close to 180 million kg during calendar year 2021, as against 207.58 million kg in 2020.

ALSO READ: First batch of Keralites arrives from Ukraine

Previous Story

Pointers to keep in mind to avoid prenatal infections

Next Story

Ukraine denies ‘dirty bomb’ speculations

Latest from -Top News

UAE champions global water cooperation at Stockholm

The United Arab Emirates reaffirmed its leadership role in advancing global water security through active participation in the 35th World Water Week in Stockholm…reports Asian Lite News The UAE emphasised that water

Egypt, UAE forge strong Arab unity

The Prime Minister emphasised that continued consultation and coordination between Cairo and Abu Dhabi are central to dealing with issues of common concern…reports Asian Lite News Egyptian Prime Minister Mostafa Madbouli has

Dubai Airshow to unveil flying future

Dubai Airshow 2025 will redefine the future of flight, showcasing eVTOLs, vertiports, and global innovations as the UAE cements itself as a leader in advanced air mobility….reports Asian Lite News Dubai is

Culture, careers and courage define Emirati women

The forum drew nearly 700 participants, including senior officials, government executives, academics and business leaders….reports Asian Lite News The Emirati Women’s Forum, held under the patronage of Her Highness Sheikha Manal bint

Power women take centre stage in Dubai

The forum marked the tenth anniversary of Emirati Women’s Day…reports Asian Lite News The Emirati Women’s Forum brought together leading voices from government, diplomacy, business, innovation, and youth to celebrate the achievements
Go toTop

Don't Miss

What went wrong with ‘invincible’ BJD in Odisha?

A strong anti-incumbency against the BJD is the most important

Indian Banks: Growth Stalls, Margins Squeeze

State Bank of India, India’s largest bank by assets, posted