The Hindu Business Line : Tea exports from South rise on more Iraq buying

OPENING up of markets in Iraq and some other countries has pushed up exports of South Indian tea during January - October 2004, when exports from the North declined.

Exports to Iraq during January - October 2004 have gone up substantially to 15.71 million kg (mkg), from 0.83 mkg in the same period last year. Total exports from the South stood at 81.3 mkg valued at Rs 508.8 crore, against 59.1 mkg worth Rs 393.7 crore, registering an increase of 22.2 million kg. Whereas exports from the North declined to 61.6 mkg from 72.9 mkg in January - October 2003.

Opening up of the Iraqi market this year has contributed to the increase in exports from the South, Mr Anil Kumar Bhandari, President, UPASI, told Business Line. He said tea from the South also found its way into Pakistan via the Gulf countries. Direct exports to Pakistan had not picked up as anticipated due to high import duty there, he said.

Added to this, the Libyan market, which had been closed for many years to Indian tea, has re-opened now. This would also help increase export of tea from the South. "Over all, there is a fresh impetus for tea exports and it is expected to continue," Mr Anil Bhandari said. Besides, new markets are also being opened up for our tea, he said.

On the other hand, there has been a decline in production this year, both in the North and South, and this has contributed to improvement in prices. The positive trend in the exports has helped the average auction price from January to mid November 2004 to go up to Rs 45.83 a kg from Rs 40.39 in the same period last year.

While the average unit value realisation from exports from the southern region remained at last year's level of Rs 62.58 a kg, it dropped in the case of exports from the North to Rs 81.3 a kg (Rs 95.42 a kg).

Meanwhile, imports during January - August stood at 17,829.99 tonnes as against the total imports of 6,776 tonnes in January - December 2003. Average unit value this year was Rs 45.91 c.i.f. as against Rs 63.86 last year.

"If this trend continues, there will be an all-time record tea imports into India - estimated to be around 25 million kg , the previous highest being 22 mkg imported during 2002," Mr Bhandari said. Another disturbing trend in the import scenario is low unit value at which the teas are imported into the country.

"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 turnaround noted in tea prices since second quarter of the calendar year."

There are also instances of unscrupulous exporters importing cheaper plantation commodities from other countries and re-exporting it after obtaining false certificate of origin from some of the organisations that have been authorised to issue certificate of origin, which include practically all the chambers of commerce in the country. Such unethical practices give scope for under quoting the genuine exporters of Indian plantation commodities resulting in a loss of export of our products, he said.

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