Kolkata: Tea export from India dipped by 19 million kgs in the first nine months of the year, but industry players feel it will pick up in the last two months. With demand from the CIS countries and the UAE on the rise again, India is likely to make up the export shortages to some extent by the end of the year.
According to Indian Tea Association estimates, exports went down by 16.22 million kg during the first six months of the year. Apart from Ireland, Canada, Japan and Iraq, exports to more than 18 countries suffered during the period.
Exports to Egypt, the fifth largest importer last year, has shown the highest dip this year. India has been trying to make an entry into the Egyptian market, dominated by Kenyan tea. During the first six months of the year exports to Egypt were down by 5.8 m kg.
India exported 7.91 m kg of tea to Egypt in the first six months of last year which came down to 2.04 m kg during the January-June period this year.
Earlier, India targeted an increase in export to Egypt in 2009 after India Tea Promotion Centre (ITPC) opened an office in Cairo. Azam Monem, chairman of export promotion council of Indian Tea association (ITA), said, “We have lost out a little bit in Egypt but we will recover that.”
According to Aditya Khaitan, MD, McLeod Russell, exports during the first half of the year went down as production was low during the period. “No exports could happen during the first flush due to shortage of the crop,” he said. “There has been a delayed start on the export front due to shortage of the crop after production was hit by drought in the first half of the year.
Exports to the UAE has also gone down during the first half of the year by 3.67 mkgs to 9.05 mkgs from 12.72 mkgs for the corresponding period last year. Monem said the global economic collapse post October last year had a huge impact on the orders from the West Asia.
“ Lot of trade in petro-dollar came to a halt last year which got reflected in January-March export figures this year,” Monem said. According to him, enquiries from the country have again picked up and will get reflected into export figures next year.
Export to CIS countries, including Kolkata: Russia and Kazakhstan, has come down by 4.98 mn kgs to 23.29 mkgs from 28.27 mkgs for the corresponding period last year.
S Patra, secretary of the Indian Tea Association, said, “Although there are signs of recovery, demand in the international market is yet to reach last year’s level.”
Meanwhile, India has been able to increase its export to Iraq in the first half of the year. Iraq has been almost a new market for India as it had exported a nominal 10,000 kgs of tea during the first half of last year.
Export to Japan and Canada during the first six months has seen marginal increase (9,000 kgs and 44,000 kgs) during the period.
According to Monem, orthodox production was hit during the first flush period which pulled down its exports by 5-6 mkgs. US, Iran and UAE are the major importers of orthodox tea. Exports to Iran and the US were down by 2.19 mkgs and 69,000 kgs respectively during the first six months of 2009
Source : Financial Express