A good news has come amid the ongoing tariff war between America and India. America has withdrawn 50% tariff on Indian products like coffee, tea, spices, tropical fruits and fruit juices. According to the Federation of Indian Export Organizations (FIEO), this will provide a big relief to agricultural exports worth about Rs 9000 crore. The export market of tea and coffee in countries outside India is quite large. Do you know how big a market India has for tea, coffee and spices in the whole world?
The exemption given to India was issued through an executive order of the White House on November 12, which came into effect from November 13. Due to continuous increase in the prices of food items in America, Donald Trump’s government was on the back foot. India is a very big producer of these things. The country was also suffering losses due to this in many ways.
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market of these things in the world
1. Global market of spices
India is the largest producer, consumer and exporter of spices in the world. India is also called the ‘bowl of spices’. India’s share in the global market by value is about 12%. According to PIB, the country has exported spices worth about $4.45 billion in FY- 2024-25. Black pepper, cardamom, chilli, turmeric, cumin and curry powder have been exported the most.
2.Tea Market
India is not only a major producer and consumer of tea but is also famous throughout the world for its Assam, Darjeeling and Nilgiri teas. India is the world’s second largest producer of tea. According to the Indian Tea Board, about 10% of the tea exported across the world is from India. This would generate an income of around Rs 7000 crore in 2024. India’s black tea accounts for about 96% of total exports.
3. Coffee market
India is not as big a player in the production of coffee as it is in tea, but the world demand for its Arabica and Robusta varieties has increased rapidly. In terms of coffee, India is the seventh largest producer and fifth exporter in the world. According to the Coffee Board of India, exports have reached a record level of US $ 180 crore in 2024-25. Its major buyers are Italy, Germany, Belgium, Russia and Turkey. The country exports about 70% of its total production to foreign markets.
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US market
The US is a premium market for Indian spices, tea and coffee. This is not only based on the demand of people of Indian origin, but their popularity is also increasing among American consumers.
1. Spices Market
America is a big consumer of Indian spices, mainly because of the high quality, variety of spices and the strong demand from the Indians living there. India had sent spices worth more than $500 million to America in 2024. According to the UN COMTRADE international trade database, the leading exporters in 2024 were black pepper ($176.68 million), cumin/coriander/fennel seeds ($81.46 million), and turmeric/ginger ($66.83 million).
2. Tea and coffee market
Consumption of both tea and coffee is very high in America. Indian tea (especially Assam, Darjeeling and Nilgiri) is seen as an exclusive and high-cost product. According to COMTRADE, tea has a market of about 66.2 million dollars in America. There is a market of coffee worth about 16.1 million dollars, but its main supplier is Brazil.
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