Indian Tea in the Global Market Composition

Review of Managing, Vol. 3, No . 1/2, June 2013

Review of Supervision,

Vol. three or more, No . .5, June 2013, pp. 11-20

ISSN: 2231-0487

Indian Tea in Global Market

Nissar A. Barua

Department of Economics, Gauhati University, Guwahati

Email: [email protected] com

Mukta Mazumder

Division of Economics, KRB Girls' College, Guwahati

E-mail: mukta. m. [email protected] com


Over the years India had centered the global tea export industry as the only largest vendre of tea. However seeing that 1990 its market share inside the global tea export started out falling in a dramatic trend where in a span of twenty eight years from 1980 to 2008 India lost a whopping 13 percent share in the global tea industry. A regression is set you back determine the result of the scale the global tea market around the volume of tea exports coming from India. The Regression research reveals the fact that expansion of the global tea market does not have significant influence of the amount of exports of Indian tea. A in reverse stepwise regression is performed to define India's market share in global tea marketplace as a function of the foreign trade market share of Sri Lanka and Kenya. The emergence of Kenya as being a major vendre of tea had negatively affected India's market share. However Bangladesh's discuss of the global tea marketplace had been falling along get back of India. The weak market share of India inside the global tea market can also be attributed to the falling competition of the tea because indicated by the Revealed Comparison Advantage (RCA) Index. Along with India, the competitiveness of China, Bangladesh, and Vietnam continues to be declining above the period 1996-2008. Relatively recent entrants to the world tea market like Kenya, Sri Lanka, and Nepal include gained at the expense of the traditional heavyweights which is apparent in your dramatic increase in their RCA index. Nepal, who displayed remarkable embrace the index have gained the benefit of the similarity of its tea with India's famous Darjeeling tea. Keywords: Indian Tea, Global Tea Market, Market Share


Historically in colonial India tea cultivation was introduced and subsequently advertised as an export oriented commodity. Tea export in India manufactured a beginning once in 1839, the initial batch of Indian tea was provided for London pertaining to auction. Ever since then India has been exporting tea to most with the tea consuming areas of the world including Europe, America, West Asia, Africa, and Australia. Over the years India had always dominated the global tea export 11

Overview of Management, Volume. 3, Number 1/2, 06 2013

industry as the single largest exporter of tea. However seeing that 1990 its market share inside the global tea export started falling in a dramatic trend. The plummeting fortune of Indian tea in the world export market is apparent in your decline in the share via 20. 86 percent in year 1986 to doze. 34 percent in 08 (Tea Table of India, online: reached during 2007-2011). The decreasing importance of tea as an agricultural foreign trade is also apparent in your fall in the share in India's total agricultural foreign trade from 19. 05 percent in 1986 to 3. 7 percent in 2008. The slipping export of Indian tea had lowered the portion of export products in the total tea produced in India coming from 32. 72 percent in year 1986 to 20. 17 percent in 2008. To revive India's tea export to its past level and reclaim its dominant status in the global tea market it is very important that an appropriate strategy can be adopted to deal with the problems that confronts the tea market. Devising a suitable strategy needs exploring the factors, responsible for the declining discuss of export products of American indian tea, and conversely, elevating market share from the competing tea exporting countries. In this background, the newspaper attempts to asses and evaluate the overall performance of India's tea export market. It seeks to distinguish the factors affecting India's tea export products and evaluate their influence. The daily news has been arranged into 6 sections. The objectives with the paper happen to be stated in Section-2. Section-3...

References: Balassa, M. (1965). Operate liberalization and revealed comparative advantage. The

Manchester College of Economical and Interpersonal Studies, 33 (2), 99-123.

Food and Agriculture. faostat. fao. org, ‘FAOSTAT, '

Tea Board (1956-2011)

UNCTAD. (2010) ‘Non tariff measures, Data from selected developing countries future

research Agenda', United Nations Conference on Trade and Development


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