At the moment, India’s Orthodox tea production is “sufficient” to fill the gap left by Sri Lanka in the global tea market, but the country will be able to do so if problems related to freight, shipping lines and payments are resolved, Tea Board India Chairman Sourav Pahari said on Saturday.
As Sri Lanka’s orthodox tea production has fallen sharply, the Indian tea industry feels it is a huge opportunity for domestic tea exporters to increase their market share in the global tea market. However, freight costs have skyrocketed due to the Ukraine-Russia war, there is also a serious shipping container shortage. Tea exporters are worried about how to solve the problem of paying for their shipments to Russia, the world’s largest tea importer. In addition, there is a lack of clarity on payment arrangements with Iran.
“At the moment our Orthodox tea production is enough to fill the gap left by Sri Lanka. But the only problem at the moment is the payment problem due to the current international situation. Exporters are not getting timely payment. There is a freight problem. There are problems with the shipping line, “said Pahari.” If these problems are addressed, India will be able to fill the gap left by Sri Lanka.
He was speaking to hill media on the sidelines of a special function to mark International Tea Day organized by the Tea Board in Kolkata in association with the Indian Tea Association. The chairman of the Tea Board said India was trying to export tea to alternative markets such as North America and Western Europe, markets that the country had not yet aggressively targeted. “There are a lot of tea-drinking countries like Canada and South Korea that we haven’t really explored. So, we have to go there now, ”he added.