India’s production of Orthodox tea is currently “sufficient” to fill the vacuum left by Sri Lanka on the global tea market, but the country would be able to do so if problems related to freight, shipping and payments are resolved, Tea said. Board India Chairman Saurav Pahari on Saturday.
As Sri Lanka’s Orthodox tea production has seen a huge decline, the Indian tea industry feels that it is a huge opportunity for domestic tea exporters to increase their market share in the global tea market. However, shipping costs have risen due to the war between Ukraine and Russia, and there is also a serious shortage of containers. Tea exporters are worried about how to solve payment problems for their shipments to Russia, the largest importer of tea in the world. Furthermore, there is a lack of clarity about the payment mechanism with Iran.
“Our production of Orthodox tea at the moment is sufficient to meet the vacuum left by Sri Lanka. But the only problem at the moment is that due to the current international situation there are payment problems. Exporters are not receiving payments on time. “There are shipping issues. There are shipping issues,” Pahari said, adding that if these issues are resolved, India would be quite capable of filling the gap left by Sri Lanka.
Pahari spoke to the media on the sidelines of a special event to celebrate International Tea Day, organized by the Tea Board in collaboration with the Indian Tea Association in Kolkata. The Tea Board chairman said India was trying to export tea to the alternative markets such as North America and Western Europe, the markets which the country has not yet aggressively targeted. “There are many tea-drinking nations like Canada and South Korea that we have not really explored. That is why we have to go out there,” he added.