The Hindu Business Line : Tea exports begin to show downward trend

THOUGH cumulative tea exports this year till October are up 10 million kg (mkg) compared with the same period a year ago, a disturbing factor is that shipments have been actually on a downswing since July.

According to statistics available from the Tea Board, exports till October totalled 142.94 mkg (131.96 mkg). However, this is mainly in view of buoyant shipments during January-June.

Tea exports had increased by 20 mkg during the first half of this year. From July, exports have declined by 1-3 mkg every month.

"Exports have declined since July because a fair amount of crop was affected by rains in Assam during monsoon. Again, during September-October crop in South India was hit by rains," said export sources.

As per Tea Board statistics, production has declined by around 5 per cent to 697.2 mkg compared with 733.5 mkg last year.

Production in Assam alone had slid by 19 mkg to 383.5 mkg till October. Dooars in West Bengal is another region that has witnessed a fall of nearly 10 mkg to 110.1 mkg. A rise in production in Terai and Darjeeling areas has helped improve the situation a bit.

Cumulatively, North India production till October has been pegged at 543.6 mkg (572 mkg).

In the South, the output has been estimated at 153.6 mkg against 161.5 mkg a year ago. Kerala has accounted for a fall of six mkg to 41.4 mkg, while the fall in Tamil Nadu has been two mkg to 107.9.

"What has happened is that due to fall in production, prices have tended to rise at the auctions. As a result, Indian tea became a little uncompetitive in the global market leading to consequent fall in shipments," said the sources.

Auction prices, which averaged Rs 44.62 a kg in the South during April-June, had shown a tendency to rise in the third quarter to around Rs 46. However, planters say that the prices were still below the cost of production.

Export sources, when asked about purchases by Kenya for shipment of blends to Egypt, said the buying had come to a halt as production in the African nations had picked up.

They also said the exporting community was not keen on shipments to Iraq, which offered to buy around 10 mkg every month, due to payment problems.

"There is no guarantee of payment on time," said the sources.

Despite the declining trend since July, exporters are confident of exceeding last year's shipments of 173.1 mkg this year.

"We will definitely do better than last year. But how much is something we will have to wait and see," they said.

More Stories on : Tea | Exports & Imports

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Making food processing viable

Rubber slips in line with global trend

Tea exports begin to show downward trend

Solvent extractors sore over Shellac Export Promotion Council

Marketfed awaits Kerala's approval to procure pepper

Godrej rolls out agri-stores