Falling demand hits Indian tea

Coffee and conflict spell bad news for tea exports

A year of stiff competition, the growing global coffee habit and the war in Afghanistan has hit Indian tea exports hard.

According to figures from the Indian Tea Association, exports in the first ten months of this year are down 11% on the equivalent period of 2000 at 150.4 million kg.

A large part of the problem is reduced demand from Russia and the UK, traditionally two of the Indian tea industry's biggest markets.

Imports to the UK are more than a quarter down on last year, a development which could well owe something to the plethora of coffee shops which have sprouted across the country in recent months.

But competition from Indonesia, Bangladesh and Sri Lanka, to name only three, has also played a part, the ITA says.

And supply to neighbouring Pakistan has been badly disrupted by the conflict in Afghanistan - while some competitors, such as Kenya, are still managing to sell to both countries.