KOCHI: With the Indian tea exports for the 11-month period ended February 2009 showing a marginal increase, it is unlikely to touch the 200
million kg for the full year as expected earlier. While the southern tea exports have shown a significant rise, the northern exports have declined. The total tea exports for the period stood at 169.8 million kg, an increase of over 2 million kg as compared with the same period of the previous year.
The southern tea export at 80 million kg recorded almost over 12 million kg rise, while the northern export fell by nearly 10 million kg to 89 million kg. According to market sources, the rise in exports from south has been due to increased offtake by Egypt, Iraq and Pakistan. The northern export is mostly to traditional markets like Russia and European countries.
The crop shortfall in Kenya has led to more buying from India by Egypt and Pakistan. The purchase of Indian tea by Pakistan, however, slowed down after the 26/11 attack. Higher offtake by Iraq has also benefited tea exports from southern states. After becoming the largest buyer of Indian tea in 2006, purchase by Iraq had fallen drastically in the subsequent year with internal conflicts in the country creating payment problems for the Indian exporters.
The current trend does not look promising for higher exports. The total tea export in January and February in 2009 at 24 million kg is less than the quantity in the same period of the previous year by over 8 million kg, with the drop coming mostly from north Indian tea exports.
Source : The Economic Times