India’s tea export earnings in the first half (H1) of current calendar have increased by 6.73 per cent over H1 of 2020 despite a fall in the volume shipped because of the significant surge in the price earned.

Kenya’s tea production in the first half was down by about 10 per cent which reduced the supply of these teas in the world market. So, importers of Kenyan teas scouted for supplies from other sources including India.

This helped the demand for Indian teas to rise in the world market. It simultaneously pushed up the price for the Indian teas to average ₹265.49 a kg from ₹218.82 a kg in H1 of 2020, reveals our analysis of the latest data with the Tea Board. This meant that every kg fetched ₹46.67 or 21.33 per cent more than in H1 of 2020.

Covid impact

However, this increase in price affected the intake by some importers. Besides, the various stages of trade restrictions in different countries due to Covid-19 pandemic adversely hit the orders, exporters said.

Consequently, the volume shipped dropped to 84.35 million kg (mkg) from 95.89 mkg in H1 of 2020 – a decline of 12.03 per cent.

Still, because of the higher price, the overall earnings rose to ₹2,239.43 crore from ₹2,098.26 crore. This marked an increase of ₹141.17 crore or 6.73 per cent to the country’s exchequer. South India posted a higher gain in earnings.

In the South, the export prices rose to an average of ₹231.22 a kg from ₹ 194.05 in H1 of 2020 – an increase of 19.15 per cent. This reduced the volume shipped to 37.99 mkg from 41.03 mkg – a fall of 7.41 per cent.

Nevertheless, helped by the higher price, the overall earnings rose to ₹ 878.39 crore from ₹796.19 crore in H1 of 2020 – a gain of 10.32 per cent.

In the North, the export prices rose to an average of ₹ 293.58 a kg from ₹237.34 in H1 of 2020 – an increase of 23.69 per cent. This reduced the volume shipped to 46.36 mkg from 54.86 mkg – a fall of 15.49 per cent.

Still, because of the higher price, the overall earnings rose to ₹1,361.04 crore from ₹1,302.07 crore in H1 of 2020 – a gain of 4.53 per cent.

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