KOLKATA: India’s tea import bill has shot up by 46% with Nepal, Vietnam and Argentina emerging as largest exporters of Indian tea during the January-July 2009 period. The Indian tea industry is importing these teas, which are primarily meant for re-export, for maintaining a competitive advantage in the global export markets.
The country has imported teas worth Rs 110 crore between January and July this year compared to Rs 75 crore in the pervious corresponding period. Import volumes have gone up to 13.2 million kg in the first seven months of 2009, which was 10.3 million kg in 2008. The unit price realisation of imported teas in 2009 has increased to Rs 83.93 per kg from Rs 73.71 per kg in 2008.
A senior tea industry executive told ET: “The price of Indian tea has gone up substantially due to a production shortage. Countries like the UK, Russia, the US and others are not ready to shell out higher prices due to the global economic downturn. So, the industry is resorting to import of cheaper teas from other countries and blend it with Indian tea for export markets.”
Incidentally, CTC teas are being sold at the auctions at Rs 125 per kg and the dust quality is commanding a price of Rs 138 per kg.
Interestingly, India has imported teas from countries like Canada, Iran, South Africa, the UAE and the US in 2009. Till 2008, India had not imported teas from these countries, which are regarded as non-traditional import destinations in tea parlance.
India’s tea exports in the period January to August in the current year has dwindled to 112.8 million kg as compared to 130.7 million kg in the corresponding period of the previous year. In value terms, however, the export has risen this year. The country exported tea worth close to Rs 1,518.81 crore till August this year and that compared with Rs 1423.05 crore in the year-ago period despite a dip in volume. The average price rose to Rs 134.70 a kg till August from Rs 108.86 in the year before.
Production of tea in the first 8 months of this year stood at 595 million kg, which is 5 million kg lower than the production of 600 million kg in the period January to August 2008.
Source : The Economic Times