The Hindu Business Line : Tea body sees bright prospects next year

Kolkata, Dec. 29 Between January and October this year tea exports were lower by 42 million kgs (mkg) vis-À-vis the same period last year, says Indian Tea Association quoting Tea Board statistics.

In the whole of 2007, total exports, it is estimated, will be 180 mkg as compared to 219 mkg in 2006. The drop in exports will be more in respect of South Indian teas than the North Indian varieties.

The ITA’s views, contained in a status paper on tea released here on Friday, attributes the drop to three factors namely, appreciation of the rupee (as much as 15 per cent within 12 months), bumper crop in Kenya, and substantial drop in shipments to Iraq due to remittance problem.

Except marginal increases in exports to UAE, Iran, Afghanistan and to some extent Russia, all other countries bought less from India this year compared with the same period last year. Several initiatives to promote Indian tea abroad and sending delegations to countries like Egypt, Pakistan, Iran and Russia yielded little results.

Tea imports in 2007, according to ITA study, are estimated at 15 mkg as compared to 24 mkg in 2006.

The shortfall in production 2007, it is estimated, will be around 16 mkg at 940 mkg (956 mkg in 2006) while the domestic consumption is estimated to be up by 20 mkg at 810 mkg (790 mkg). Between January and October, the drop in production was 20 mkg. The production of orthodox tea has shown improvement. It is estimated that an increase of 15 mkg, entirely from North Indian gardens, will be recorded during the current year.

Outlook bright

The outlook for 2008, according to ITA status paper, appears bright. There will be insignificant carry forward stocks. However, prices will be governed by the size of the crop and the export demand from the beginning of the season.

A quality-focussed policy might help the health of the tea industry improve. Increased availability of orthodox teas should brighten the exports prospects. However, appreciating rupee remains a matter of concern. ITA, therefore, suggests Government assistance to help exporters retain their competitiveness.

More Stories on : Tea | Exports & Imports

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

Stories in this Section
NCDEX denies rumours its chief has quit

Rice prices on a boil; market tight

Spot rubber rules steady

Tea body sees bright prospects next year

Palm oil may test resistance, drop

Minimum export price for rice hiked