The Hindu Business Line : Tea exports may not have hit 200 mkg in 2008

Chennai, Jan 7 Tea exports, despite a rebound in November, are unlikely to have topped the 200 million kg (mkg) mark during 2008 as shipments slowed due to global financial crisis and buyers deferring or renegotiating purchases.

According to Tea Board data, exports during November increased 0.59 mkg to 19.05 mkg. Shipments rebounded after declining for two consecutive months. Overall exports during January-November were up at 175.51 mkg against 178.75 mkg the whole of 2007.

Despite the rebound, industry players and traders say it is unlikely that exports will hit 200 mkg. The Tea Board had, during the middle of last year, set a target to export 210 mkg. “Not much export took place during December. Therefore, tea exports would not have touched 200 mkg,” trading sources said.

Even if exports were around November-level, the best month-wise performance during 2008, they could end up around 195 mkg level.

Tea shipments from the country took a beating during September and October as financial crisis hit global markets worldwide, causing sharp fall in prices. In view of this, tea prices too fell, forcing buyers to either default or renegotiating deals.

PRICES REBOUND

Prices were expected to pick up from December-end and a firm trend is being witnessed from the beginning of this year. Auction prices in African countries such as Kenya and Mombasa increased nearly 10 per cent this week. A firm trend was witnessed at the various auctions across the country last week.

“Tea prices are rebounding but we have to wait and see how they behave in the coming days,” the sources said, adding: “Still, hardly any export quality teas are coming into the auction. However, all that come to the sales are being taken care of by internal demand.”

During 2009, the Centre’s efforts to smoothen the process of exports to Iraq and other West Asian countries and plans to open trade office in Cairo in order to promote Indian tea in Egypt are expected to help improve things.

OUTPUT SLIDE

The data also showed production declining 2.3 mkg during November to 89.6 mkg. While output in South India was 23 mkg, the same as November last year, it declined in Assam and West Bengal. In South India itself, a 0.4 mkg rise in Tamil Nadu’s production helped overcome a 0.5 mkg drop in Kerala’s output.

In North India, production in Assam dropped 1.3 mkg to 38.6 mkg, while in West Bengal it slipped one mkg to 25 mkg.

During January-November, production has shown a 27.7 mkg rise to 922.2 mkg. Going by the trend, it is likely that the output could be around 975 mkg since it tends to drop in December with plucking slowing in North India.

The trend of better production is likely to continue this year as good prices have resulted in growers improving crop management practices and taking good care of the estates.

More Stories on : Tea | Exports & Imports

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

Stories in this Section
Spot rubber turns weak

Sugar trade thru deepwater port at Kakinada

High volume on offer at Coonoor tea auctions

Tea exports may not have hit 200 mkg in 2008

Dec oilmeal exports flat on global meltdown

Pepper futures up on bullish sentiments

Global coffee festival put off to October

Dhiren Sheth to head cotton body