Date:25/08/2004 URL: http://www.thehindubusinessline.com/2004/08/25/stories/2004082500541200.htm

Back Dip in tea export earnings

P.S. Sundar

Coonoor , Aug. 24

DATA on export realisations from various countries clearly indicate that every kg of tea shipped out during the first four months of the current calendar year lost Rs 15 on an average compared to last year.

Tea exports for the first four months earned an average of Rs 83 a kg, compared to Rs 98 during the same period last year.

As the country has been offering its teas at a lower price, there has been increased intake by importing countries. Thus, overall exports rose to 46 million kg (mkg) from 38 mkg last year.

Arising from the increased volume shipped, overall earnings rose to Rs 386 crore from Rs 376 crore.

Russia continued to be largest importer, but its intake fell to 11 million kg from 12 million kg last year.

As the unit price was also lower at Rs 64 per kg from Rs 66, the earnings from that country fell to Rs 71 crore from Rs 81 crore last year.

On the whole, the CIS region imported 15.56 mkg compared to 17.76 million kg last year, with the unit price falling to Rs 71.91 from Rs 73.81.

UAE was the second largest importer with 8.36 mkg (7.07 mkg) worth Rs 84.88 crore (Rs 88.11 crore).

On the sporadic side, ARE paid the highest value of Rs 590 per kg and imported some negligible volumes. Turkey paid Rs 344, while Japan paid Rs 255 per kg for the nearly one million kg it imported.

Australia (Rs 164), Germany (Rs 159), ARE (Rs 148), the US (Rs 133) and the UAE (Rs 102) are other high-priced importers.

Pakistan paid the lowest average price of Rs 39 per kg and imported 1.72 mkg between January and April worth Rs 6.68 crore. During the same period last year, it imported 0.90 mkg valued at Rs 4.12 crore at a unit price of Rs 45.78 per kg.

Kenya, a producing country, is fast emerging as an importer of Indian dust grades. HLL is actively purchasing the teas for Kenya, which is also being serviced by individual traders. In the four months, Kenya imported 3.59 million kg valued at Rs 16 crore against 0.04 mkg worth Rs 0.21 crore last year. It paid Rs 44.50 per kg against Rs 52.50 last year.