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

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.