The Hindu Business Line : Tea Board pins hopes on Iraq, Pak, Russia for exports

“We would work out the export target by the time the new fiscal starts, but indications are that 2008 would be bright,” the Tea Board Chairman, Mr Basudeb Banerjee, told Business Line.

When his attention was drawn to the reality that the target of 210 million kg (mkg) fixed for 2007 was lower than the actual export of 218.7 mkg of 2006, he said targets were fixed based on provisional figures which underwent revisions as the year rolled by. “By now, we have estimated the exports for 2007 at 156.7 mkg, but this will also undergo revision,” he said.

His expectations for 2008 were based on three major markets – Iraq, Pakistan and Russia.

In Iraq, exporters are facing a procedural problem relating to payment. “The Union Minister of State for Commerce, Mr Jairam Ramesh, has taken up the matter with his counterpart. We have held three meetings on the practical conditions for exports. Indian representative in Iraq is following up. We hope to have this problem sorted out soon. This will boost our shipments to Iraq in 2008,” he said.

On shipments to Pakistan, Mr Banerjee anticipated an increase of around 5 mkg over 2007. “Kenyan teas are becoming expensive for Pakistan. Both in our auctions and direct exports, Pakistan is showing interest. We will capitalise on this,” he said.

High prices will drive Russia also towards India. “Here again, Russia is already finding Kenyan and Sri Lankan teas expensive. We have the teas Russians need. We expect an increase of around 10 mkg in our shipment to Russia,” he said.

Meanwhile, the falling trend continued in January when exports dropped to 13.8 mkg from 15.6 mkg in January 2007. So, despite the unit price rising to Rs 97.38 a kg from Rs 90.80, the overall earnings dropped to Rs 134 crore from Rs 142 crore.

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