KOLKATA: Indian tea imports for re-export is slated to rise in the coming months as the country’s tea producers are flooded with export enquiries from Iraq, Iran, Egypt, UK and Europe. These countries are keen to lift tea from India as prices here are comparatively lower than Lankan and Kenyan teas even amidst a global shortage.
According to available data, India has imported 8.12 million kg of tea between January and May at an average price of Rs 83.59 per kg. The country had imported 6.56 million kg during the same period in 2008 at Rs 70.80 per kg.
“These imported teas are blended with Indian tea and re-exported to global markets. International markets are keen to buy tea from India since Kenya is offering the same grade of CTC teas at $2.43 per kg (Rs 120 per kg ) as compared to Rs 106.51 per kg in India.
“Similarly, Sri Lanka is selling orthodox teas at Sri Lankan rupees 324.60 per kg (Rs 135 per kg in India). These lower rates are attracting foreign buyers from tea drinking nations,” said a senior tea industry official.
India has been able to ship 74.5 million kg between January and June 2009 and has been able to realise Rs 983.86 crore.
In 2008, India had exported 90.8 million kg and earned a tea export revenue of Rs 932.73 crore.
Even though the export price realisation has increased, the Indian tea industry is worried over reduction in tea exports to Russia. Early indications suggest Russia has imported 5.96 million kg in 2009 as compared to 13.05 million kg in 2008.
“We are hoping Russia too will start buying aggressively soon. We have to attain 200 million kg of exports in 2009,” the industry official added. Meanwhile, among other major tea-producing countries, production in Sri Lanka is down by 38.5 million kg, while in Kenya, the drop is 20.7 million kg.
Source : The Economic Times