On-the-Ground Updates

Indian tea export to benefit from the minimum reserve price imposed by Kenya

Herbal Tea

India

Kenya

Regulation & Compliances

Market & Price Trends

Mohammed Zafar

Published Oct 20, 2021

The Indian tea export has been adversely affected by the low prices of Kenyan tea. The Kenyan government has imposed a minimum export price for its processed tea, which is most likely to boost Indian tea exports.

The average FOB price of Indian tea was around USD 3.50 - 4.00 per kg while that of Kenyan tea was around USD 2.00 per kg in 2021. The imposition of a minimum reserve price of USD 2.43/ kg by the Kenya Tea Development Agency will increase the Kenyan prices.

This narrowed price difference has resulted in new export inquiries for Indian tea from CIS and US markets.

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