Indian tea exports more likely to fall practically 15 per cent in 2021

Indian tea exports more likely to fall practically 15 per cent in 2021

The tea trade decline in exports to the tune of 30-40 million kg this yr as in comparison with 2020, as a result of availability of low-cost varieties within the international market, commerce restrictions sources mentioned


India | Tea Exports

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The tea trade is bracing for a decline in exports to the tune of 30-40 million kg this yr as in comparison with 2020, as a result of availability of low-cost varieties within the international market and amid commerce restrictions in international locations which have historically been robust importers, trade sources mentioned.

The coronavirus-induced financial downturn in a lot of the world can also be an element for falling shipments, they mentioned.

For the interval between January to March this yr, exports fell by 13.23 per cent as in opposition to the corresponding interval a yr in the past, and by 29.03 per cent in comparison with 2019, as per Tea Board India knowledge.

Altogether, 45.86 million kg tea was exported from India between January to March in 2021. The determine was 52.85 million kg in 2020 and 64.62 million kg in 2019.

The dip within the share of shipments from North India has been extra in comparison with South India because the final three years.

Whereas the tea export share of South India fell by 5.41 per cent in 2021 between January and March in comparison with the identical interval in 2020, the decline was 25.85 per cent in comparison with 2019.

In case of exports from North India, the determine for the three-month interval was decrease by 17.83 per cent as in opposition to 2020 and 31.04 per cent in comparison with 2019.

“Indian exports have suffered within the final two-three years attributable to very low costs of Kenyan and Sri Lankan tea.

“Kenyan tea public sale worth common is under 2 US {dollars} per kg, which is way lesser than our public sale common,” Dinesh Bihani, secretary, Guwahati Tea Public sale Consumers Affiliation (GTABA), instructed PTI.

Kenyan tea is on the market for 1.8 US {dollars} per kg (Rs 130-135 per kg) on a median, whereas for Indian tea, the common public sale worth is sort of Rs 200-210 per kg, he added.

India had exported 208 million kg of tea out of the entire manufacturing of 1,255.60 million kg in 2020, whereas shipments accounted for 252 million kg out of 1,389.70 million kg produced in 2019.

One other tea trade supply identified that there’s very restricted home consumption demand of the beverage in Kenya and Sri Lanka, which implies that extra tea is on the market and focused for export.

About 80 per cent of it produced in India is bought for home consumption, as per a 2018 ‘Government Abstract of Research on Home Consumption of Tea’ revealed by the Tea Board.

Exports to Pakistan, a significant marketplace for Indian tea, have additionally stopped because the final three years following escalation of rigidity between the 2 international locations, the trade supply added.

“The US sanctions in opposition to Iran can also be a reason for concern for Indian tea exporters,” he mentioned.

Iran imported 9.98 million kg of tea between January and March 2020 at a median price of Rs 263.14 per kg, which decreased to 4.57 million kg for the corresponding interval this yr, bought at a median worth of Rs 246.81 per kg, as per Tea Board India knowledge.

“The worldwide financial system goes by way of a disaster as a result of COVID-19 lockdown and restrictions, which have led to additional international decline in demand for tea,” the supply mentioned.

Home consumption of tea can also be anticipated to have gone down because the onset of the pandemic final yr within the out-of-home sector (tea bought in railway stations, bus depots and cafeterias), although the precise determine is but to be surveyed, Bihani mentioned.

(Solely the headline and movie of this report might have been reworked by the Enterprise Normal workers; the remainder of the content material is auto-generated from a syndicated feed.)

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First Revealed: Solar, July 11 2021. 19:08 IST