Kolkata, April 22 The targeted 210 million kg of tea exports in 2009-10 might not be achieved, according to Mr Basudeb Banerjee, Chairman of Tea Board of India.
“This will happen despite the promise of higher exports to countries like Iran, Egypt and Pakistan,” Mr Banerjee told Business Line on the sidelines of the inauguration of Kolkata Tea Festival sponsored by Tea Board here on Wednesday.
“This year, we’ll certainly export more teas to these countries than before but our exports to traditional markets like Russia and Europe might suffer,” he said, attributing it to production shortfall and recession in western countries.
Production hit
The scanty rainfall has already dealt a severe blow to production of Darjeeling tea, the first flush crop having suffered by more than 20 per cent. “Last year, we exported more orthodox teas and we’re hoping to maintain the trend this year also but much would depend on the crop position in the coming months,” he said. “The drought has hit the production of both North and South Indian varieties but the North’s production has been more affected”.
Export earning
Despite the projected drop in exports in the current fiscal, the export earning during the period, he estimated, would be higher largely due to the rise in average tea prices.
“Last year, the earning from tea exports amounted to half a billion dollars, or over Rs 2,000 crore, thanks to an average Rs 10-12 per kg increase in tea prices,” he said indicating that the rising trend would persist in the current year due to shortfall in production in major tea producing countries.
In 2008-09, India’s tea exports, he said were of the order of 185 milllion kg, slightly lower than 189 million kg in 2007-08 and the last quarter of 2008-09 was particularly bad.
Source : Business Line