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India’s tea exports have taken a beating on all three fronts – volume, value and price – so far this calendar compared to the same period of 2019.
Till May, the latest period for which official data are available with the Tea Board, India’s tea exports nosedived to 74.40 million kg (mkg) from 101.38 mkg during January-May 2019, marking a loss of 26.61 per cent.
Lower availability due to reduced production, 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 this decline in shipments.
Earnings drop
With fewer takers, especially at higher prices, the average price dropped to ₹215.15 a kg from ₹224.21 in January-May 2019, marking a loss of 4.04 per cent.
In the five months of current calendar year, the overall earnings dropped to ₹1,600.72 crore from ₹2,273.02 crore, posting a shortfall of 29.58 per cent.
“However, the prices in the domestic market were more attractive for the producers encouraging them to sell higher volume within the country especially in the backdrop of lower production”, a trader said.
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