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Tea import at higher prices pushes up bill .


Date: 01-02-2010
Subject: Tea import at higher prices pushes up bill

Coonoor, Jan. 31 Tea import bill in calendar 2009 had risen by 4.91 per cent over that in 2008 as more volume was imported at a higher price.

Till November, the latest period for which official data is available with the Tea Board, the country imported 22.95 million kg against 18.47 m. kg in the corresponding period of 2008.

The average price paid was Rs 84.44 a kg, up from Rs 78.97 in 2008. Consequently, the import bill rose to Rs 193.79 crore from Rs 184.71 crore. The country imported teas from about 20 countries, some trading, not producing sources as well. Volume-wise, the largest quantity of 7.41 m. kg (2008: 7.28 m. kg) came from Nepal, followed by 5.46 m kg (1.46 m. kg) from Viet Nam, 2.53 m. kg (3.27 m. kg) from Indonesia and 2.37 m. kg (3.19 m. kg) from Kenya.

Value-wise, India paid the highest import bill of Rs 61.23 crore (Rs 54.56 cr) to Nepal, followed by Rs 32.94 cr (Rs 8.17 cr) to Viet Nam, Rs 32.10 cr (Rs 33.64 cr) to Kenya and Rs 22.56 cr (Rs 21.29 cr).

Price-wise, India paid the highest price of Rs 414.79 a kg (no import in 2008) for import of tea from the USA, followed by Rs 186.48 (no import in 2008) from Japan, Rs 179.63 (Rs 223.15) from the UK, Rs 137.58 (Rs 196.81) from Sri Lanka and Rs 135.41 (Rs 107.49) from Kenya.

In respect of imports from Sri Lanka which enjoys concession in import duty, the country paid Rs 12.8 crore to import 9.3 lakh kg against Rs 7.75 crore to import 3.94 lakh kg in 2008.

The bulk of the imported teas were used for re-export and so, the volume pumped into domestic use was marginally less in 2009 over 2008. Of the 22.95 m. kg imported, 15.40 m. kg was re-exported. In 2008, of the 18.47 m. kg imported, 10.74 m. kg was re-exported. In 2009, a volume of 7.55 m. kg of the imported tea was pumped into the domestic market. In 2008, this volume had been 7.73 m. kg.

Source : Business Line


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