2 hrs ago
Russia-India Energy Ties Lift Prospects for Premium Orthodox Tea Exports
India sells tea to Russia, and Russia sells a lot of oil to India.
This trade has created more Indian rupees in Russia.
Better payment arrangements may make it easier for Russian buyers to purchase Indian goods.
Russian buyers especially like higher-quality orthodox tea from southern India.
Some exporters say they are paying good prices for this tea.
However, the amount of tea shipped to Russia fell during part of 2025.
India’s overall tea exports also weakened in a later period, even though prices stayed fairly strong.
One expert expects premium orthodox tea to do better than cheaper CTC tea.
Another expert warned that winter shipping problems and political uncertainty could affect future purchases.
India exported about 31.32 million kilograms of tea to Russia in FY26, making it the third-largest destination by volume.
Indian tea shipments to Russia fell 23% year-on-year during January-August 2025, despite continued demand for premium orthodox varieties.
Russia-India trade reached about $70 billion in 2024, driven mainly by Russian crude-oil exports to India.
Around 96% of bilateral trade is now reportedly settled through rupee-rouble mechanisms, reducing payment difficulties for importers.
Stakeholders said premium orthodox teas appear more resilient than commodity CTC grades, although shipping risks and changing consumption patterns remain concerns.
- Who
- Indian tea exporters, Russian tea buyers, and industry stakeholders including Anil George Joseph, N. Lakshmanan Chettiar, and Dipak Shah.
- What
- India’s energy and payment ties with Russia may support demand for premium Indian orthodox teas.
- Where
- Trade takes place between India and Russia, with orthodox tea sourced particularly from South India and sold through venues including the Kochi auctions.
- When
- The analysis was published September 8, 2026, and cites trade data from 2024 through July or August 2026.
- Why
- Increased bilateral trade and improved rupee-rouble settlement may give Russian importers greater ability to buy Indian goods, while orthodox tea remains attractive in quality and price.
Optimistic outlook
Cautious outlook
Effect of energy ties
Optimistic outlook
Anil George Joseph and N. Lakshmanan Chettiar said Russia’s oil-related rupee liquidity and improved payment systems could support purchases of Indian orthodox tea.
Cautious outlook
Tea demand still depends on consumer and blender requirements, and the available shipment data shows that exports to Russia weakened during January-August 2025.
Future of orthodox tea
Optimistic outlook
Stakeholders said premium, good-made orthodox teas remain competitive on quality and price, attract premiums, and have been more resilient than commodity CTC grades.
Cautious outlook
Dipak Shah said the scale of renewed Russian demand is difficult to determine, while changing consumption patterns may favor packet teas, tea bags, and some CTC small-leaf teas.
Near-term trade risks
Optimistic outlook
High sales at the Kochi auctions, where around 95% of orthodox offerings were recently sold, indicate continued exporter support for quality teas.
Cautious outlook
Winter shipping disruptions and an unstable political situation could affect delivery schedules and encourage buyers to focus on maintaining adequate stocks.
Key facts
- FY26 tea exports to Russia
- About 31.32 million kilograms
- Russia’s share of Indian tea-export value
- Approximately 6.6%
- Russia trade ranking
- India’s third-largest tea-export destination by volume in FY26, after the UAE and Iraq
- India-Russia bilateral trade in 2024
- About $70 billion, driven largely by Russian oil exports to India
- Rupee-rouble settlements
- Sberbank said around 96% of bilateral trade is settled through rupee-rouble mechanisms
- India’s overall FY26 tea exports
- 271.93 million kilograms, up 5.45% from 257.88 million kilograms
- January-August 2025 shipments to Russia
- 20.84 million kilograms, down from 26.92 million kilograms in the same period of 2024
Quotes
N Lakshmanan Chettiar
Manufacturer and exporter of orthodox teas at Golden Hill Estates in Coonoor
“It is difficult to ascertain the extent of renewed demand, but we have to keep in mind the ensuing winter months, which could disrupt shipping schedules. Even in the current scenario, buyers would like to be properly stocked due to the highly unstable political situation”
thehindubusinessline.com
“Exports of teas have definitely increased to Russia. They are buying quite a lot of orthodox teas from South India, which they find it attractive. Also they pay a good premium.”
thehindubusinessline.com
Sources
Related news
India's Russian crude imports hit record for second straight month
Russia Buys Indian Petrol as Crude Trade Turns Full Circle
India's Russian crude imports hit record high in July
India and Russia Set $100 Billion Trade Goal by 2030
India’s Russian Oil Imports Fall Amid Supply Pressure
Senate bill threatens India with 100% tariffs over Russian oil
Sberbank Positions Indian Workers as Russia’s Strategic Labor Resource
Missile Attack on Russia’s Belgorod Kills Two, Injures 16
Russia’s Banks Face Liquidity Strain as Withdrawals Surge
Ukrainian Drone Attacks on Wildberries Strike at Russia's Economic Heart
