The Hindu Business Line : Tea exporters earn Rs 515 cr less in 2007-08

For the calendar 2008 so far, there has been a marginal increase in earnings despite a fall in volume. In the first quarter, prices rose Rs 2.96 a kg over last calendar to reach Rs 96.83.

P.S. Sundar

Coonoor, May 25

Tea exporters earned Rs 515.39 crore less in 2007-08 than the previous fiscal, an analysis of the latest year-end statistics available with the Tea Board shows.

In 2007-08, every kilogram of tea fetched on an average Rs 98.36, that is, Rs 4.59 more than the previous fiscal. But, the volume shipped dropped to decades’ low total of 155.59 million kg (mkg), as much as 62.56 mkg lower than the previous fiscal.

Consequently, the overall earnings dropped to Rs 1,530.33 crore from Rs 2,045.72 crore. This sharp reduction of Rs 515.39 crore upset the exporters. There was no official target for value earnings from export.

“The lower shipment has reduced tea overseas delegations to mere sight seeing trips. The country’s export focus has failed miserably”, a disappointed exporter told Business Line.

But, for the calendar 2008 so far, there has been a marginal increase in earnings despite a fall in volume as the price fetched rose. In the first quarter, prices rose Rs 2.96 a kg over last calendar to reach Rs 96.83.

But, the volume shipped dropped to 43.25 mkg from 44.37 mkg. Consequently, the overall earnings rose by Rs 2.25 crore to reach Rs 418.79 crore.

If March is an indication, exports have started rising. In March, price fell by Rs 1.74 a kg over March 2007 to average Rs 99.72.

This helped more volume to go. Shipments increased by 2.72 mkg to reach 16.04 mkg.

Consequently, the overall earnings rose by Rs 24.85 crore to reach Rs 159.95 crore.

Last week auction

Prices rose generally Rs 2 a kg over last week at Sale No: 21 of the auctions of the Coonoor Tea Trade Association (CTTA) here as strong demand prevailed to absorb the huge volume of 12.76 lakh kg. Both exporters and upcountry buyers were active.

“Brighter liquoring CTC leaf teas received good demand and prices rose Rs 2 a kg over last week. Brokens fetched Rs 3 more. Bolders gained up to Re 1.

Fannings got Rs 3 to 4 more. Plainers also sold Rs 2 more. Whole leaf orthodox grades were dearer by Rs 5-10 a kg. Orthodox fannings got Rs 5 more.

In the dust sale, strong demand prevailed on all categories. Better medium and medium teas were dearer by Rs 2-3. Plainer dusts got Rs 3 more. But, primary orthodox dusts suffered subdued demand and lost Rs 2-3. Some teas remained unsold for want of bids”, an auctioneer told Business Line.

Exports

On the export front, Pakistan was forceful on well-made grades and paid up to Rs 65 a kg. CIS was selective on bolder grades at Rs 45 a kg level. Egypt was strong on blacker types for Rs 53.

Poland lent some support for bolder grades at the lower end of the market. Lone Sudan buyer bought CTC dust grades.

Among corporate buyers, Hindustan Unilever Ltd bought good medium leaf grades, but did not operate on dust sales. Tata Tea re-entered the market for good medium sorts.

Upcountry buyers keenly competed for the range of better medium and medium teas.

This week also, no brand of CTC teas from bought-leaf factories crossed Rs 100 a kg mark. Darmona Estate topped at Rs 94, followed by Homedale Estate at Rs 90. Deepika Supreme and Selva Ganapathy Supreme got Rs 89, Professor Rs 88, Shanthi Supreme and Green View Estate Rs 87, Hittakkal Estate Rs 84, Highfield Estate, Kannavarai Estate and Ella Estate Rs 83, Garswood Estate Rs 81 and Vigneshwar Estate Rs 80.

Among the orthodox teas from corporate sector, Tiger Hill and Mailoor got Rs 114 a kg, followed by Kairbetta Rs 102, Corsley and Glendale Rs 100.

Quotations held by brokers indicated bids ranging from Rs 43-45 a kg for plain leaf grades and Rs 65-86 for the brighter liquoring sorts.

They ranged Rs 47-52 a kg for plain dust grades and Rs 65-84 for brighter liquoring sorts.

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