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Though the current situation does not augur well for the tea trade here, members of the trade foresee a silver lining in the coming days.
A member of the tea trade told BusinessLine that there were enquiries from the US for green teas from India, while dismissing that it’s too early to say much.
“The US has been sourcing its green tea requirements from China. The outbreak of this pandemic has probably forced them (the US) to turn elsewhere. There are enquiries, but it may be too premature to say much,” an industry source said, preferring anonymity.
Industry insiders are looking at this development as both an opportunity and a challenge.
“The challenge is in being able to supply green tea that is good or much better than the ones from China; the opportunity is obvious,” the source said.
Cash crunch
Meanwhile, traders pointed out that they were facing a cash crunch, unable to make payments or receive their dues. “It is not just the exporter or buyer, the entire trade is facing this issue. We expect the situation to return to normalcy once the activities are resumed, albeit slowly. But any extension of lockdown will spell doom for the trade.”
“While the estates have started selling teas and realising some money, the trade (buyers, brokers and exporters) has started feeling the pinch. Some of us managed to sustain for a month, but it can be very difficult if the situation persists, lockdown is extended,” the source said
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