Agri Business

India’s H1 tea shipments take a beating

PS Sundar Coonoor | Updated on September 24, 2020 Published on September 24, 2020

In the first half (H1) of current calendar, India’s tea exports have taken a beating on all three fronts – volume, value and price – compared to the same period of 2019.

Till June, the latest period for which official data are available with the Tea Board, India’s tea exports nosedived to 93.93 million kg (mkg) from 119.72 mkg during January-June 2019, marking a decline of 21.54 per cent.

Lower availability due to output reduction, Covid-induced lockdown in many countries, suspension of transport facilities, disruption in the public auctions, hesitancy among exporters to invest huge sums against uncertain shipments and disturbance in banking operations were said to be major causes for poor performance on India’s tea export front.

With fewer takers, especially at higher prices, the average price dropped to ₹218.30 a kg from ₹225.37 in January-June 2019, marking a loss of 3.14 per cent.

As less volume was shipped at lower average price, the overall earnings from tea exports suffered significantly. In H1, the overall earnings dropped to ₹2,050.52 crore from ₹2,698.13 crore, posting a shortfall of 24 per cent.

Tea industry in both North India and South India posted a decline in tea exports on all the three parameters.

“Producers, however, found the domestic market price more attractive than the export price,” a trader said.

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Published on September 24, 2020
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