shipbuilding scheme to provide incentives to Indian shipyards until 2035.
The Indian tea industry is worried about the 50% tariffs imposed by the US on Indian imports, which are expected to affect tea exports to the US. This includes an initial 25% tariff and an additional 25% imposed because India has purchased Russian oil, effective from August 27. According to the Indian Tea Association (ITA), tea producers, who are already operating on very thin margins, cannot absorb this increased cost. The US is an important market for Indian tea, with exports reaching around 17 million kg last year.
Despite the tariffs, the ITA suggests that US consumers might be willing to pay a higher price due to strong demand for Assam and Darjeeling teas. The association is asking the government for interventions such as incentive schemes for ICD (Inland Container Depot) shipments to lower high inland transportation costs and a reinstatement of the orthodox tea subsidy. These measures would help address imbalances in the product mix and meet growing global demand.
The export data shows mixed results: North India saw an 8.74% increase in quantity and a 22.33% increase in value from January to May 2025, while South India experienced a 15.42% decline in quantity. Overall, India’s tea exports saw a 15.09% increase in value and a 16.85% increase in unit price, despite a slight 1.51% decrease in quantity.