Raising quality issues, many of the overseas tea buyers in traditional markets emphasised the need for improvement of Indian teas hitherto dominated by Kenyan varieties.

At the business session in the recently-concluded India International Tea Convention in Ooty, representatives from the US, Egypt, Iran, Pakistan, Bangladesh, who unanimously preferred South Indian tea in their markets, underlined the need for quality improvement to regain the lost glory of Indian teas in the respective markets.

Kenya is emerging as a major threat to Indian tea exports, for which a concerted effort is needed to achieve a better share in these markets, they pointed out.

According to Gilbert F Kendzior, Tea Association of the USA, the awareness on the health benefits of tea, especially among the younger generation in the US, augurs well for tea consumption. The goal is to enhance the numbers by building a consensus for tea’s role in a healthy diet as the consumption of green tea is growing much faster than black tea. The dollar value of tea is expected to touch $13 billion by the end of this year from $10.84 billion in 2014.

Mohammed Heiza, Tea Consultant in Egypt, suggested that the Tea Board of India and United Planters Association of South India (Upasi) chalk out plans to restore the Egyptian market.

The devaluation of the Egyptian pound against the US dollar has affected the cost of tea imports from Kenya, offering a South Indian tea a chance to regain the market.

Iranian challenge

Indian tea is mainly imported from South India and used as a price reducer or as a filler. With traditional Iranian tea markets adapting to changing trends, Yahya Beeyad was of the view that improved South Indian quality deserves a bigger market share.

However, the Sri Lankan and Kenyan varieties pose major competition to Indian varieties in the Iranian market, which is very price sensitive and does not compromise on quality. He also urged Indian tea manufacturers to set up packaging facilities in Iran as it holds good export potential to neighbouring countries.

N Dharmaraj, the outgoing president of planters’ body Upasi, said that South India is poised to exploit the Golden Leaf India Awards (TGLIA) to position its high-quality teas in the global market. Upasi producers are organising themselves to produce critical volumes of these teas by launching a separate auction under the umbrella of the Pan India auctions for these teas effective from December 1.

With Iran’s stringent requirements in pesticide residues, he said South Indian orthodox teas, with their superior track record, are expected to garner a major share in Iran and take away the market from Sri Lanka.

(The writer was in Ooty at the invitation of Upasi for the India International Tea Convention 2016)

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