South Indian Tea Exports Down 14 pc In May 2011.

Tea exports from South India fell by almost 14 per cent to 6.43 million kg in May, 2011, as it is facing competition from East African tea-producing countries like Kenya, according to industry analysts.

Tea exports from South India in May, 2010, stood at 7.47 million kg, Tea Board data said.

"South Indian tea is facing competition from East African countries like Kenya, which have started exporting to other destinations, as their shipments to Egypt have come down due to the turmoil," R Sanjith, Commodities Head at United Planters Association of South India, told PTI.

Kenyan tea exports to Egypt are down as the situation there is still not normal, which has forced Kenyan exporters to look for other destinations, Sanjith pointed out.

"In the current situation, Kenyan tea has entered the export market of South Indian teas, affecting our export base," he said.

The demand for South India tea from North African and West Asian countries has also come down, he added.

Tea production in South India also came down in May this year.

South Indian tea output declined by 3 per cent to 24.43 million kg in May from 25.22 million kg in the corresponding year-ago period, according to the Tea Board data.

"Our production has gone down marginally due to unfavourable weather conditions," Sanjith said.

Source : economictimes.indiatimes.com