India’s tea exports for the 2022-23 financial year registered a 17.61 per cent growth at ₹6,582.14 crore against ₹5,596.67 crore the previous fiscal on higher shipments to Russia and the UAE, as per quick estimates released by the Commerce Ministry.
Trade sources said the growth in shipments was on expected lines with exporters taking advantage of the crisis in Sri Lanka to push more Indian teas into the global market. However, exporters are cautious about the evolving situation in Iran, one of the biggest buyers of Indian orthodox teas, and said it could weigh on the shipments in the current financial year.
On expected lines
Anshuman Kanoria, chairman, India Tea Exporters Association, said the growth in exports was on expected lines and largely on the back of a lower Sri Lankan crop. “The hit that Sri Lanka took opened certain opportunities, and that’s what we managed to captialise on. With the Iran issue still hanging in, overall export prospects for the current year are not as bright as last year,” Kanoria said.
Iran accounts for over half of India’s orthodox exports. “Nobody knows what’s happening in Iran. It’s been over three months that they have not registered new contracts, and the orthodox market has opened very subdued. Shipments have been made, but even payments for them are coming very slowly. New orders are not getting registered, and it’s a very difficult situation,” Kanoria said.
Russia aggressive
Deepak Shah, Chairman of the South India Tea Exporters Association, said Russia has been buying quite aggressively, and with the rupee trade happening, shipments are likely to improve. However, Iran is a concern as the payment issue still persists and new contracts are not taking place. “The Government of Iran has to register contracts for import, which they are not doing, and the reasons are not known,” he said.
N Lakshmanan of Golden Hill Estates, an exporter of orthodox teas, said the year has certainly been good. “The government needs to support the exporters in their marketing efforts and help establish the Indian presence even in the non-traditional markets. New markets have to be explored, and an Indian brand has to be established like the Sri Lankan brand Dilmah,” Lakshmanan said.