The Hindu Business Line : Rising exports, output cheer tea sector

Chennai, Oct 15 There is some cheer in the cuppa as the Indian tea industry is on a comeback mode with production and exports increasing despite competition from several countries such as Vietnam and Bangladesh.

Data available from the Tea Board indicate that exports rose by about 18 million kg (mkg) to 124.04 mkg till August this year, compared with the corresponding period last year.

ON THE BUOY

“The mood is buoyant as the Indian tea industry now beginning to look up. Overseas demand is on the rise and prices are firming up owing to good quality teas, besides shortage of teas in the world market,” an industry source told Business Line. Pakistan, Egypt, Iran and Iraq and West Asian countries occupy the permanent slot in the export list.

Besides these countries, Kenya itself has been buying from India to meet its export obligations, while Pakistan has also begun to buy some quantities to meet the shortage arising out of Kenyan production troubles.

RISING OUTPUT

On the production front, the country produced 123.1 mkg during August 2008 as against 116.3 mkg during the corresponding period last year. For the January-August 2008 period, production has been estimated at 599.7 mkg tea against last year’s 576.1 mkg.

During August this year, south Indian output dropped to 14.1 mkg (15.6 mkg), while north Indian production rose to 109 mkg (100.7 mkg).

However, the period from January to August this year saw south Indian production rise to 155.1 mkg (140.7 mkg) while north Indian output stood at 444.6 mkg (435.4 mkg).

GOOD TIMES AHEAD

Tea production this year has been pegged at 960-970 mkg compared with 955 mkg produced last year.

Besides increasing exports and production, rising prices for tea at various auctions across the country are also spelling good times for the industry.

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