In a historic milestone for the plantation sector, India’s tea exports climbed to an all-time high of 280.40 million kg in 2025. This record-breaking performance, announced by the Tea Board of India on February 9, 2026, represents a 9.5% increase over the 256.17 million kg shipped in 2024.
Despite a volatile geopolitical landscape and temporary tariff shocks in Western markets, Indian exporters successfully diversified their reach, turning the Middle East and East Asia into primary engines of growth.
1. The Numbers: Volume and Value Surge
India’s tea industry didn’t just move more volume; it also saw a significant boost in revenue due to better unit price realization for Assam Orthodox varieties.
| Metric | 2025 (Jan–Dec) | 2024 (Jan–Dec) | Change (%) |
| Export Volume | 280.40 Million Kg | 256.17 Million Kg | +9.46% |
| Export Value | ₹8,488.43 Crore | ₹7,167.41 Crore | +18.43% |
| Unit Price | ₹302.72 / kg | ~₹279.79 / kg | +8.19% |
2. Top Importers: Iraq and China Lead the Way
The 2025 record was driven by a dramatic shift in market dynamics. While traditional markets like the US saw a decline, Iraq emerged as the top buyer, and China saw a stunning 158% increase in offtake of Indian tea.
- Iraq (52.59 Mkg): Now India’s largest export destination, accounting for nearly 19% of total volume.
- UAE (50.71 Mkg): Continues to serve as a vital re-export hub for the broader Middle Eastern and Iranian markets.
- China (16.13 Mkg): Shipments more than doubled from 6.24 Mkg in 2024, driven by a burgeoning Chinese appetite for high-quality Indian black and orthodox teas.
- Iran (11.25 Mkg): Direct shipments rose, though the majority of trade continues to be routed via Dubai to manage payment complexities.
3. Key Growth Drivers
Several strategic factors converged in 2025 to propel Indian tea to this new high-water mark:
- The “Orthodox” Pivot: While CTC (Crush, Tear, Curl) tea remained stagnant, demand for high-value Assam Orthodox tea soared, especially in West Asia.
- Market Diversification: Faced with “Trump Tariffs” in the US (a temporary 50% duty in late 2024/early 2025), the Tea Board urged exporters to tap non-traditional markets in North Africa and China.
- The India-US Trade Deal: The resolution of trade uncertainties in late 2025 restored zero-tariff status for Indian tea in the US, opening the door for long-term supply contracts heading into 2026.
- Supply Gaps in Rivals: Ongoing production challenges in Sri Lanka and a temporary drop in Kenyan output earlier in the year allowed India to capture a larger share of the global “premium” segment.
4. Outlook for 2026: The 300 Million Kg Target
Following the record year, the Indian Tea Exporters Association (ITEA) has set an ambitious target of 300 million kg for 2026.
Potential Headwinds:
- EU Pesticide Norms: Tighter Minimum Residue Limit (MRL) regulations in Europe could impact conventional tea shipments, though organic gardens in Assam are well-positioned to meet these standards.
- Climate Volatility: Extreme weather in North India remains a constant threat to crop consistency.
- North Africa Expansion: The Tea Board plans to aggressively target Morocco, Algeria, and Tunisia in 2026 to challenge Kenya’s dominance in those regions.
“Exporters deserve credit for taking calculated risks in volatile markets like Iraq and Iran. With promotional support, we can comfortably scale to 300 million kg this year.” — Anshuman Kanoria, Chairman, ITEA
