Date:10/08/2007 URL: http://www.thehindu.com/2007/08/10/stories/2007081056781700.htm

Business

Tea exports drop in first half

Special Correspondent

KOLKATA:Indian tea exports have declined by 13.4 per cent in the first half of calendar 2007. Between January and June, exports stood at 75.7 million kg against 87.5 million kg in the same period in 2006, official statistics show.

Exports from South India witnessed a 14.8 million kg fall while that from North India increased by 3.1 million kg. North India accounts for 80 per cent of the country’s tea production and exports. Sources at the United Planters’ Association of Southern India (UPASI) said rupee appreciation had hurt exports, especially to price sensitive markets like Pakistan. South Indian merchant exporters export over 50 per cent of the region’s annual output of about 220 million kg.

However, there has been no pro-rata drop in export earnings which stood at Rs. 725 crore, only Rs. 9 crore lower than the first half of 2006. This has been due to an improvement in export prices, both from North and South India.

According to the Indian Tea Association’s immediate past-president, Percy Siganporia, the rupee appreciation has come at a time when the currencies of competing countries like Sri Lanka have actually depreciated by about 7.4 per cent.