The global tea market is facing a surplus of 100 million kilograms of tea, which could have repercussions on Indian tea prices and exports in 2024, as noted by industry executives. In 2023, global tea production reached nearly 6,500 million kilograms, surpassing the 6,400 million kilograms recorded in 2022, with Sri Lanka and Africa driving this increase in output.
CK Dhanuka, chairman of Dhunseri Tea & Industries, said, “The excess tea in the global markets that has been carried over from last year will impact the prices and exports of Indian tea.”
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The global tea markets in 2023 have been influenced by geopolitical tensions and escalating concerns about an economic downturn.
In the calendar year 2023, Indian tea exports totaled 227.91 million kilograms, marking a decrease of 1.37% compared to 2022. Additionally, the unit price realization also experienced a decline, dropping by 3.5% to INR 265.58 per kilogram in 2023 compared to the previous year.
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