The Hindu Business Line : Tea exports from South rise in 2004

INCREASED exports from South India pushed up tea shipments in the calendar year 2004 by around 10 million kgs (mkg) over the previous year, while exports from the North dropped by 3.8 mkg.

Exports from South India in 2004 went up by 13.5 mkgs to 95 mkg from 81.5 mkg in 2003. As a result, the total exports from the country increased by 9.9 mkg to 183.6 mkg valued at Rs 1,673.5 crore from 173.7 mkg worth Rs 1,590.2 crore the previous year.

Opening up of markets in Iraq and some other countries raised the exports, while the shipments to traditional markets in the CIS countries such as Russian Federation, Kazakhstan, Ukraine, Uzbekistan and others had declined by 10.17 mkg.

Exports to these markets dropped from 58.68 mkg in 2003 to 48.51 mkg in 2004. Exports to Iraq had gone up to 24.73 mkg from 13.36 mkg, while that to UK dropped from 19.90 mkg to 17.77 mkg.

Opening up of Iraqi market last year had contributed to the increase in exports from South India, Mr Anil Kumar Bhandari, President, UPASI told Business Line. He said tea from South India also found its way into Pakistan via the Gulf countries. Direct exports to Pakistan had not picked up as anticipated due to the prevailing high import duty. As a result, exports dropped from 5.75 mkg in 2003 to 3.53 mkg in 2004.

Add to this, the non-traditional markets such as Libya, which had been closed to Indian tea, have opened up now. This would also help increase export of tea from South India.

"Over all there is a fresh impetus for tea exports and it is expected to continue," Mr Anil Bhandari said.

On the other hand, there has been a decline in production in North and South India and this has contributed to improvement in prices.

Meanwhile, imports increased to 30.52 mkg valued at Rs 139.43 crore from 9.86 mkg worth Rs 57.57 crore in 2003.

The disturbing trend in the import scenario was the low unit value at which the teas were imported into the country, he said. "I feel this a matter of great concern for the tea sector in general and South Indian tea industry in particular, especially in the context of some turn around is noted in tea prices."

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