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Volume-wise and value-wise, Russia continues to be the largest importer of Indian tea although there has been a fall in its intake and returns so far this calendar compared to 2017, reveals our analysis of the latest data available with Tea Boards of various nations.
Considering a slump in its intake following a slow growth in its economy, Indian exporters reduced the asking price to an average of $2.33 a kg from $2.41 in the same period of 2017. In Indian currency, this meant that the exporters got ₹155.12 a kg down from ₹157.63 last year.
Nevertheless, the overall imports of Indian tea by Russia dropped to 29.99 million kg (mkg) till August from 30.94 mkg during January-August 2017.
With the volume shipped unable to match last year’s level despite the drop in price, the overall earnings from tea exports to Russia in the eight months of this calendar declined to ₹465.21 crore from last year’s ₹487.70 crore.
Nevertheless, this was the highest earning for India’s tea exports from any importer.
Iran was the second largest importer at 17.34 mkg worth ₹416.20 crore at an average price of ₹240.02 a kg. Here, the volume absorbed rose from 16.58 mkg last year when price averaged ₹253.63 but the drop in price led the total earnings to fall from₹420.52 crore.
On the other hand, when exporters reduced the asking price to an average of ₹195.69 a kg from last year’s ₹200.41 to the UAE, its imports rose to 13.14 mkg from 11.26 mkg. Consequently, the overall earnings increased to ₹257.14 crore from ₹225.66 crore, thereby proving that this is a promising market for Indian tea exports. The UAE was the third largest importer of Indian tea so far.
Pakistan, the fourth largest importer of Indian tea, also proved to be attractive. To induce higher absorption, exporters reduced the asking price to an average of ₹96.23 a kg from ₹104.37. This helped the absorption to rise to 10.16 mkg from 7.32 mkg. Consequently, the overall earnings rose to ₹97.77 crore from ₹76.40 crore.
The volume shipped was less than 10 mkg to all other destinations.
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