Although tea production has expanded in Bangladesh over the past decade, outbound shipments of the once major export earner have dropped at the same time in the face of growing domestic demand, according to market players.

As consumption is growing in line with the country's expanding population and urbanisation, tea production has increased over the years to cater to local markets rather than those abroad, they said.

Besides, another reason is that local prices are comparatively better compared to that of the international market.

Omar Hannan, chairman of the Tea Traders Association of Bangladesh, said local consumption rises by 6-7 per cent every year and if domestic production cannot cope, then tea would have to be imported to make up for the dearth in supply.

"So, the export decline is not a demerit," he added.

Large amounts of tea go up for auction at the end of each harvesting season but nothing remains unsold, meaning that exports can only increase when there is surplus in production.

"Conversely, if there was a lot of tea left over after catering to local demand and it is not exported, then that would be a matter of concern," Hannan said.

According to the Bangladesh Tea Board (BTB), tea is currently exported from Bangladesh to 23 countries, including the US, UK, France, China, Japan, India and Switzerland.

Nader Khan, founder of the Halda Valley Tea Company, said Bangladesh's economic growth has been quite good in the last decade and as a result, country's tea consumption has increased.

"Due to this, production increases every year but exports are not increasing," he said, adding that different blends are still imported to suit varying tastes.

Sources say that a little less than one million kilogrammes (kgs) of tea is imported every year for various reasons, particularly rising consumption.

"Annual tea consumption may shoot up to 130 million kgs by 2025," said Munir Ahmad, deputy director for planning of the BTB.

BTB data shows that about 96.51 million kgs of tea was produced in 2021, up by some 54 per cent compared to 62.52 million kgs in 2012.

The country earned $2.44 million from tea exports in fiscal 2012-13 and then $4.47 million in fiscal 2016-17. However, foreign currency earnings from the product dropped to $2.14 million in the last fiscal year, according to the Export Promotion Bureau.

BTB sources say that Bangladesh was the world's fifth highest tea exporting country back in the 1990s, when international demand was high considering the good quality of local blends.

At that time, tea was at the top of the export list for Bangladesh.

An official of the Bangladesh Tea Research Institute said that in 1947, 18 million kgs of tea was produced in the erstwhile East Pakistan. Of the total amount, 15 million kgs were exported.

Then in the 1970s, tea production rose to about 31 million kgs per year, a large portion of which was still exported, and this trend continued until the 1990s, he added.

While speaking at the recent National Tea Day programme, Commerce Minister Tipu Munshi said that there is demand for Bangladesh's tea in the global market as the quality is good.

However, he added that it is not possible to export as much tea as expected.

In Bangladesh, 45 per cent of the tea produced is consumed at the household level while the rest at tea stalls, restaurants, and offices.

Tea is a part of social and professional life in the country, making it one of the most-consumed beverages and it is popular among low-income groups as well.

Local tea brands dominate the domestic market with a 75 per cent share while non-branded producers account for the rest.

According to the Bangladesh Tea Association, the 166 tea estates in the country cover almost 280,000 acres of land. Bangladesh is currently listed as the world's ninth largest tea producer, accounting for around 2 per cent of the world's total production.

In addition, 90 of the tea gardens are currently in Moulvibazar, which accounts for 55 per cent of the tea produced in the country. Habiganj is the second largest producing district, contributing 22 per cent.