According to Sanjay Singhal, CEO of Wagh Bakri Tea Group, Indian tea prices in the U.S. market are expected to increase in September-October due to new tariffs. The U.S. is Wagh Bakri’s top export market, and since the U.S. doesn’t produce its own tea, the increased tariffs will likely be passed on to consumers. Singhal explained that three types of Indian tea are shipped to the U.S.: loose tea, private labels for retail chains like Walmart, and packaged tea from companies like Wagh Bakri, and all will be affected.
A significant portion of their tea, shipped as container cargo, is currently en route to the U.S. to meet the demand for the upcoming Deepavali festival in October. The tariffs were imposed after the containers had already left India. While the company anticipates a potential “destruction in demand,” it still expects to see a 12% growth in the U.S. market. In the domestic Indian market, however, Wagh Bakri is projecting only a single-digit growth rate for the current fiscal year.