According to the most recent Tea Board data, the United Arab Emirates (UAE) has surpassed the Commonwealth of Independent States (CIS) as the second largest importer of tea from India.
From January to September 2022, the UAE imported 28.58 million kg of tea from India, a 159% increase over the same nine-month period in 2021.
CIS nations imported 38.06 million kilogrammes in 2022, up from 33.34 million kilos in the same time in 2021.
According to tea industry sources, exporters are seeking for new markets as shipments to Iraq, a former key importer, have been cut to nothing owing to payment concerns. “It’s encouraging to see that the UAE is now importing a lot of Indian tea. This bodes well for exporters because it is a significant user of premium orthodox varieties “one exporter stated Aside from Iraq, shipments to another key consumer, Iran, are suffering as a result of US economic sanctions, as well as because Iranian importers are not lifting the item owing to non-issuance of bills to Indian exporters.
Exports to the CIS are also on hold due to the military conflict between Russia and Ukraine, which has hampered shipments due to logistics concerns, according to exporters. Total Indian tea exports amounted at 165.58 million kilos from January to September 2022, up from 142.55 million kilogrammes in the same period in 2021. The Indian Tea Association (ITA), the planters’ governing organisation, forecasts that Indian tea exports would reach 230 million kilogrammes in 2022, up from 196 million kilogrammes in 2021. The tea business is also aiming to increase exports to China, which has the greatest consumer of the beverage.
In fiscal year 2018-19, the UAE imported tea worth $323 million ( Source: ITC data 2018)
Kenya is a major tea import partner for the UAE, supplying tea worth $ 142 million, accounting for over 44% of total import demand.
India is the UAE’s second largest tea supplier, delivering tea worth $ 96 million, or 29.7% of total imports.
Sri Lanka is the third largest tea supplier to the UAE, accounting for $ 44.87 million, or 13.9% of total demand. Tea worth $19.29 million is supplied by China, Indonesia, and Vietnam together.
Kenya and India have steadily boosted their shipments to the UAE from 2014 to 2018. Tea supplies from Sri Lanka, on the other hand, have decreased.
The UAE exports a large amount of tea to Russia, Iraq, Iran, Egypt, and Ukraine. UAE is a re-export centre for several commodities, including tea, due to its liberal trade standards, favourable taxation laws, and strategic geographical position.
In 2018-19, the UAE exported tea worth $ 295 million. (ITC statistics from 2018)
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