Tea exports have declined in the first eleven months of fiscal 2017 and is likely … A bumper crop in Kenya and lower exports to some of the key markets were the …
Tea exports have declined in the first eleven months of fiscal 2017 and is likely to close at a lower level after showing a healthy rise by volume and value in 2015-16. A bumper crop in Kenya and lower exports to some of the key markets were the main reasons behind this.
As per latest official statistics, between April and February 2017, exports, at 206.9 million kgs were down by four per cent over the previous period. India exported 232.9 million kgs in 2015-16, breaching the 230 million mark for the first time since 1980-81.
Earnings through tea exports are estimated at Rs 4225.5 crores during the period under review against Rs 4183.7 crores a year ago. There has been a rise in unit price in dollar terms at $ 3.04 industry sources said. In rupee terms prices stood at Rs 204.2 per kg against Rs 194.4 per kg.
Lower exports to Russia (annual exports of around 45 million kgs) , UK, Bangladesh and Pakistan were factors that led to the slide, according to Sujit Patro Joint Secretary, Indian Tea Association.
Bumper crop in Kenya (over 50 per cent rise according to latest statistics) and Bangladesh, which is emerging as tea- growing nation, aggravated the excess supply in the international market.
Sources said that during the period under review, India has increased tea exports to three high-value markets– Iran, Germany and USA. These are now evolving as a stable market for speciality teas. Exports increased to UAE too (which often serve s as a re export destination). All these markets purchased not only higher volumes of Indian tea between April and February 2016-17 , but also at a higher price than the year’s average of $ 3.04.