The Hindu Business Line : Tea exports to Iraq resume; volumes low

Coimbatore, Aug. 29 After a brief lull, tea exports to Iraq are reported to have resumed this week. Trade sources told Business Line that the volumes were not significant, but were expected to pick up in due course.

Though exports seem to have picked up, trade sources apprehend some resistance at the current price levels.

A glance at the volumes traded in the Coimbatore auction centre show that both the quantities traded and the rates have moved up compared to the corresponding period of the previous year.

The volumes traded (of both leaf and dust) for the six months ended June 2008 increased to 14.1 million kg against 11.38 million kg (during the corresponding six months) last year. The average price also increased from Rs 49.94 a kg to Rs 56.29 a kg.

Slackening volumes

Mr Deepak Shah, Chairman of the South India Tea Exporters’ Association, said: the export volume to Iraq was just around 3 million kg, compared to 25 million kg during the last year. “There has been good support from Egypt and Kenya, but the demand from Pakistan is slightly bearish at present,” he said.

On the subject of slackening exports to Iraq, he said: “Teas worth around Rs 25-30 crore was still not cleared at the other end. Our funds are still stuck and we are in talks with the Iraqi Government, but without any success till date. Yet some exporters have taken the risk and signed up new contracts,” he added.

While admitting to difficulty in signing up new contracts at the prevailing prices, he said “it would be difficult to penetrate into newer geographies. Price is a barrier, but that is not all. Most of the importing countries are buying ‘multi-origin teas’ and blending them.

More Stories on : Tea | Exports & Imports

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

Stories in this Section
Indian Energy Exchange records over 18,000 MW trade on Aug 8

No respite to East as rain deficit gets cut to 1%

RBI moots farm revamp to boost productivity

Rice, oilseeds kharif coverage increases

Shore-bound

Spot rubber rules firm

Sugar exporters against move to remove sops

Tea exports to Iraq resume; volumes low

Demand for copper substitutes seen rising

Heritage opens dairy parlours

Suguna plans daily-fresh stores in South

Bears pull down pepper futures