Trade deals with European Union and United States to boost tea export, hope planters
Telegraph | 15 February 2026
Stakeholders of the tea sector believe the export of the beverage will increase in the coming days following on India’s trade deals with the European Union (EU) and the United States.
The recent data published by the Tea Board of India show that India exported 280.40 million kilos of tea last year.
“It is a record, despite considerable geopolitical tensions in the year. India and the EU have recently signed a free trade agreement (FTA), and for the tea industry, tariff benefits, combined with GI protection, offer options for growth in exports,” Shailja Mehta, the president of the Tea Association of India (TAI), said on Saturday.
She was speaking at the 54th annual general meeting of the north Bengal branch of the TAI, held at the Central Dooars Club in Binnaguri in Jalpaiguri district.
India exports 19 to 21 million kilos of tea to the EU countries in a year, said Mehta, who pointed out that countries like Germany and Poland are prominent buyers of the Indian brew.
“The FTA is expected to enhance India’s competitiveness in global markets across key sectors such as agriculture, processed foods, and tea. While the duty rates on black tea and most green tea categories were already nil, the latest FTA is expected to eliminate duties on green tea imports of less than three kilos, strengthening India’s export potential,” she added.
In her speech, the TAI president also referred to the India-US trade deal and said that it would boost market sentiment, remove punitive tariff and accelerate economic and strategic partnership.
In 2024, India exported 17.14 million kilos of tea to the US, while in 2025, it marginally reduced to 15.21million kilos.
“We are hopeful of regaining the market share and taking it to a new height in the days to come. The change in tariff will help in restoring the price competitiveness for Indian orthodox and speciality teas in the US market against other competitors like Kenya, Sri Lanka, and China,” said Mehta.
At the meeting, representatives of the association said the tea industry supports around 32 lakh people in north Bengal.
While elaborating on the rise in exports and new options after the trade deals, they also underscored the unbridled duty-free import of teas from Nepal and termed it an area of concern for the Indian tea industry.
“Such teas are sold in the domestic as well as international market as Darjeeling Tea, thereby diluting the brand image of Darjeeling Tea and adversely impacting the prices. Some exporters import large quantities of low-cost teas duty-free, ostensibly for re-export after blending with Indian teas. This has to be stopped,” said Prabir Bhattacharjee, the secretary general of the TAI.
Uttam Chakraborty, the chairman of the association’s north Bengal branch, appreciated the state’s policy on tea tourism.
“However, considering the financial challenges faced by the tea industry in Bengal, we would urge the state government to extend financial assistance like interest subvention on working capital loans, subsidy on production of green, orthodox, and speciality teas, as well as for the plant and machinery required for producing such teas,” said Chakraborty.