![]() ![]() However, the increased production has outstripped domestic consumption which sometimes led to stagnancy in the market. But it has been reported that the share of STGs has increased to 49% during April to August, 2019 (). The Tea Board of India defines STG as a person who has a tea cultivation of up to 25 acres but presently most growers own less than 2 acres of land. This is mostly due to small tea growers (STG) segment accounts for almost 36% of the India’s total tea production in 2014. This increment of 51 mkg marked gain of 3.82% which was highest ever production so far for India. In India, a total of 1390 million kilograms (mkg) of tea was produced in 2019. Figure 1 depicted worldwide tea production by leading countries from 2010 to 2019. In the last few years, the tea production of Kenya, Sri Lanka, Vietnam, Turkey and Indonesia has also been significant from the global perspective. Today, India is the second largest global tea producer right behind China. Tea is one of the most popular, lowest cost and second most consumed beverages in the world. ![]() Since last few years recurring problems with low prices and high labour costs, unusual weather is intensifying in the Indian tea industry are also highlighted. In the present article growth of tea production, consumption, tea market, auction prices, revenue earning and impact of COVID-19 on tea prices from the global perspective are discussed. Indian export target of 300 million kilograms (mkg) was set for 2020 but target was fell both in volume and value terms between January and June 2020 and target expected to be lower around 210 mkg. Though gradual increment of revenue has been observed but the year-on-year revenue growth rate of Indian tea industry has reduced significantly. The auction prices were 2.5 times more since lockdown, which have impacted the gross margins in the September quarter. The price rise would certainly provide some relief to the Indian tea industry which has been struggled with consistent increasing production costs since 2014. The lockdown effect on production, market and export of Indian tea was comparatively severe than other major tea producing countries. The average monthly auction prices were gradually increased from INR 188.77/kg in June to INR 260.63 in August and has shown declining trends fetching INR 252.87 in September and INR 206.26/kg in October 2020. of India and other major producing countries are presented. The COVID-19 pandemic blow comes just at a time when unit prices of Indian tea were on the rise for its better quality, but lockdowns severely affected the Indian auction price till 22nd week of 2020. A comparative growth of tea export, auction prices, price realization etc. Black tea occupied major share and now-a-days expansion of green, herbal and flavor teas has been seen. Indian production has increased at a CAGR of 4.17% between 2010 to 2018 but slight falling trend in production have been noticed in 20. The consumption rate in India has increased at a CAGR of 2.95%. India is the second largest tea producer and one of the world’s largest consumers of tea. Kuntze is most consumed drink in the world makes a vital contribution to the economy of the producing countries.
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