India’s tea exports in calendar year 2016 dropped by 5.20 per cent over 2015. But with average prices increasing by 4.79 per cent, the decline in the overall earnings was contained at a marginal level of 0.65 per cent, shows an analysis of the data available with Tea Board.

In all, 216.79 million kg (mkg) of tea was exported from India in 2016 against 228.66 mkg in 2015, marking a decline of 5.20 per cent.

In dollar terms, the average price was flat in both the years at $2.97 a kg. However, because of exchange fluctuations, the unit price increased to ₹199.60 from ₹190.47 in 2015 — up 4.79 per cent.

Volume dips The higher price reduced the intake resulting in the volume shipped to fall by 12 mkg.

Consequently, the overall export earnings dropped to ₹4,327.04 crore from ₹4,355.32 crore.

Because of the higher price, the overall realisation dropped only by 0.65 per cent.

In dollar terms, this meant a fall to $644.15 million from $678.78 million — down by 5.10 per cent.

Kenyan supplies up “The increased supply of 3.65 per cent over 2015 and the general reduction in demand for high-priced teas in the backdrop of volatile politico-economic conditions in some countries besides the trade disruptions following demonetisation resulted in lower shipments,” an exporter said.

“With Kenya increasing its supplies by 72 mkg due to excess production and lower domestic consumption, India faced competition for its CTC teas in global market,” he explained.

Volume-wise, Russia continued to top India’s export table at 44.20 mkg (47.44 mkg the previous year), followed by Iran 22.75 mkg (22.06 mkg) and UAE 16.60 mkg (16.18 mkg).

Value-wise, India got the highest value of ₹641.27 crore (₹650.76 crore) from Russia followed by ₹589.85 crore (₹569.65 crore) from Iran and ₹373.32 crore (₹366.74 crore) from the US.

Pakistan, the world’s second largest importer after Russia/CIS, imported just 12.77 mkg worth ₹124.99 crore in 2016 from India against 19.45 mkg worth ₹183.44 crore in 2015.

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