India’s tea exports fall 8.9% in H1 FY27 as West Asia crisis disrupts shipments

India’s tea exports declined by 9 per cent in volume and 8 per cent in value during the first half of FY2026-27, as geopolitical tensions in West Asia disrupted shipments to key overseas markets.

As per the latest provisional data released by the Tea Board, exports during April-September this financial year were 128.43 million kgs (mkg), down from 140.96 mkg in the same period last year.

In value, tea exports during H1 FY27 stood at ₹4,016 crore, down 7.7 per cent from ₹4,351.22 crore a year ago. However, the per unit realisation saw an increase of 1.3 per cent at ₹312.7 per kg against corresponding last year’s 308.68 per kg on improvement in overall pricing environment.

Exports from North India dropped 6.71 per cent to 88.24 m kgs (94.59 m kg in H1 last year). Export value of North India teas was down 7.14 per cent at ₹2,937.35 cr (₹3,163.32 cr). The unit price realisation for North Indian teas declined by 0.46 per cent to ₹3,32.88 per kg (₹3,34.42 per kg).

South shipments dip 13%

Shipments from South India declined by over 13 per cent in volumes at 40.19 m kg (46.37 m kg). The value of the South Indian tea shipments declined 9.2 per cent at ₹1,078.65 cr (₹1,187.90 cr). However, the per unit realisation was up for South Indian teas by 4.77 per cent at ₹268.39 per kg (₹256.18 per kg).

Dipak Shah, Chairman, South India Tea Exporters Association, attributed the decline in shipments to higher freight rates and the prevailing war in the West Asia region, a major market for Indian teas. The ongoing war has impacted the shipments not just only to the region but also to other markets as the shipment transit time has almost doubled, he said.

A sharp hike in the freight rates has impacted the exporters realisations, while the delay in payment receivables has been a concern, he said.

Published on November 13, 2026