Date:07/10/2008 URL: http://www.thehindu.com/2008/10/07/stories/2008100756281600.htm

Business

Tea exports likely to look up

Indrani Dutta

KOLKATA: Indian tea exports are set for a sizable rise this year reversing the declining and irregular trend witnessed over the last few years. Gross exports are expected to be about 205 million kg in 2008 against 179 million kg in 2007.

The period was also marked by an increase intea imports fromNepal.

Exports have already increased by 17 million kg between January and June as compared to the same period in 2007, with North India accounting for 9 million kg and South India 7.6 million kg.

Expanding markets in countries such as Egypt and increased exports to Pakistan, the CIS, United Arab Emirates and Iran are some of the reasons behind this increase. The drop in production in Kenya, one of India’s biggest rivals, has also helped India score gains.

“We expect exports to be in the region of 200-205 million kg this year”, Monojit Dasgupta, Secretary General of the Indian Tea Association, the apex industry body of the North India planters, said. However, tea imports have increased from 7.97 million kg to 10.27 million kg in the period under review, Mr. Dasgupta said. Imports from Kenya dropped during the period.

Mr. Monojit Dasgupta said with international tea prices on an upward curve, India too gained in prices and in the first six months of 2008, it earned Rs. 883 crore through exports of 87.41 million kg with prices averaging at Rs. 101.10 a kg.