The Hindu Business Line : Tea exporters earn Rs 8 cr less in January

Coonoor, March 28 The year 2008 has opened with low returns for tea exporters as their earnings in January declined by Rs 8 crore over the same period of the previous year.

Earnings dropped despite the unit price rising, because the volume shipped fell. According to the Tea Board, exports slid to 13.7 million kg from 15.6 million kg with the asking price rising to an average of Rs 97.38 a kg from Rs 90.80.

Consequently, the earnings dropped to Rs 134 crore from Rs 142 crore.

Remedial steps

Exporters who entered 2008, with much hopes, after a disastrous 2007 are disappointed. In 2007, their earnings dropped by as much as Rs 478 crore over the previous year to Rs 1,528 crore.

“Although it is too early to predict, unless timely remedial steps are taken, export business will face shut down this year if this trend is allowed to continue,” an exporter told Business Line. He said that his company has already started trading in domestic market.

Tea Board has not yet announced the export target for 2008.

Meanwhile, the Union Minister of State for Commerce, Mr Jairam Ramesh, told growers recently here that the thrust for the current year was on Pakistan, Iran and Egypt.

“In the next five months, Nilgiri orthodox tea will get a geographical indictor like Darjeeling. It will be a separate brand with a separate logo protected by law,” he said.

For 2007, the Board had fixed a target of 210 million kg estimating the shipments in 2006 at 204 million kg. But, the actual shipments in 2006 rose to 219 million kg, thereby rendering the target insignificant. The actual exports in 2007 are now estimated at 157 million kg — the lowest in decades.

In the fiscal 2007-08, until January, exporters have earned Rs 525 crore lesser than the previous fiscal.

This happened despite the unit price rising to an average of Rs 98.78 a kg from Rs 93.51, because the volume shipped dropped sharply to 126 million kg from 189 million kg.

More Stories on : Tea | Exports & Imports

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

Stories in this Section
Peninsula posts staggering rain records

Rising prices push inflation to a 14-month high at 6.68%

Tea exporters earn Rs 8 cr less in January

Potato prices crash

‘Edible oil export ban to have little impact’

Tobacco farmers demand excise rollback on non-filter cigarettes

Export floor price for rice raised again