Sector 02
Tea
Tea is scientifically classified as Camellia sinensis, although its scientific name has undergone several revisions over time.
Tea requires a minimum annual rainfall of 127 cm (50 inches) and thrives best in well-drained acidic soils.
Sector Summary
- Global tea production exceeded 7 billion kg in 2024, despite adverse weather, pest pressures, and rising input costs.
- India remained the world’s second-largest tea producer, though national production declined by 6.5% to 1,303.53 million kg.
- Karnataka produced 4.5 million kg of tea in 2024 from an area of approximately 2,093 hectares, contributing to South India’s output.
- Tea prices recovered strongly in 2024, with the All India average auction price increasing by about 18% over the previous year.
- South Indian teas recorded a 12% increase in auction prices, averaging around US$1.54 per kg, reflecting improved market sentiment.
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