Kenya tea imports jump 288% in 2024 amidst India’s oversupply, impacting local prices
Poor quality tea from Kenya being pushed into India for blending and re-exported in the garb of Indian tea, feels industry.
Imports from Kenya in the last four months have been "alarming," amidst oversupply in India, which was keeping the Indian tea prices depressed.
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Guwahati, Jan 19: Tea imports from Kenya to India jumped by more than 288 percent in 2024, sparking concerns that the cheap and lower-quality African tea is used for blending and even re-exported under the brand of Indian tea.
Between January and October, 2024, Kenya exported 13.71 million kg of tea to India, which was already grappling with oversupply issues. Tea imports from Kenya in the previous year were 3.53 million kg during the same period. The average price of these imported teas is around Rs 156.73 per kg compared to Rs 252.83 fetched by Assam tea in auctions up to October last year. Tea production in India (up to November) was down by over 50 million kg in 2024, and Assam alone accounted for a crop loss of over 20 million kg. The slight dip in production saw the prices go up by Rs 52 in 2024.
Industry sources added that imports from Kenya in the last four months have been "alarming," amidst oversupply in India, which was keeping the Indian tea prices depressed.
"Very cheap and substandard teas from Iran and Vietnam are also being imported into India and are being re-exported as Indian teas, thereby ruining the image of Indian teas. Earlier, there was a North Indian Tea Council under the aegis of the Tea Board, which monitored the quality and MRL compliance of teas entering India, but since this was abolished, it has become free for all," they said.
While some teas are being imported in EOU's (export oriented units) and against advance licenses for re-export to Iran, Iraq, and Russia, there are serious apprehensions that some teas could also slip into the domestic market as there are no strict checks and balances.
What is even more worrying is that Kenya had over 100 million kg of substandard unsold tea after the minimum price policy was enforced in 2021 in that country. Industry sources have not ruled out the possibility of those old teas being pushed into India.
"This trend threatens the prospects of Assam Orthodox and Brand India, as most teas exported are foreign teas being camouflaged as Indian teas and are being shipped using Indian certificates of origin and health certificates. The government and Tea Board need to act swiftly by banning any duty-free imports of teas by merchant exporters. If this is not done immediately, there will be permanent damage to the image and reputation of Brand India," sources said.
Indian Tea Exporters' Association (ITEA) chairman Anshuman Kanoria admitted that the large quantum of tea imports from Kenya is a matter of concern and said it is important to get the correct customs import figures for tea from all origins to get an accurate picture of imports and net exports.
"Uncontrolled imports and their export as Indian tea bring serious negative consequences for the image, demand, and price of Indian tea.
It also creates an uneven playing field for exporters promoting genuine Indian tea vis-à-vis those passing off imported tea as Indian tea. The surge in tea imports and their usage needs to be ascertained with full consequences for violations," Kanoria told The Assam Tribune.
Secretary of Guwahati Tea Auction Buyers' Association Dinesh Bihani felt that the tea imported from Kenya is possibly old tea. "Imports are happening because Mombasa auction prices are much lower than in India for comparable teas/quality. Around 119 million kg tea are kept there for over one year due to govt regulation on minimum price fixed at auctions. All the teas are not Kenyan; we say Kenya because the auctions are held in Mombasa. These teas can have multiple origins like Burundi, Ugandan Tanzania, Malawi, etc.," he said.
By-
Rituraj Borthakur