KOLKATA: India is likely to miss the tea export target of 210 million kg in calendar 2009 even though the country is importing more teas for re-export at higher prices to meet increasing global demand. The drought like situation in the country's tea estates has affected production, and in the first four months of the current year, it has dwindled by 25 million kg.
Talking to ET, Basudeb Banerjee, chairman of Tea Board said: "Going by the trend in tea exports in the first four months, achieving a 210 million kg exports seems unlikely. Production is down and with internal consumption of tea rising significantly, producers are finding it difficult to meet export demand. At this juncture, it is expected that India may export 175 million kg in 2009."
In the first four months of this year, India has exported about 50.3 million kg and that compared with 62.8 million kg in the corresponding period of the previous year. However, the unit price realisation in 2009 has gone up to Rs 127.35 per kg, against Rs 97.94 per kg.
"A production shortfall in key producing countries like Kenya and Sri Lanka is also seen pushing up exports in the coming months," Mr Banerjee added. India, China, Sri Lanka, Indonesia and Kenya together produce 75% of the total global production of tea.
Though tea exports has gone down in the first four months, tea imports to India for re-export is on the rise. Indian tea exporters are buying tea at a higher price to meet export commitments. Compared to an average import price of Rs 68.63 per kg in the first four months of the last year, the import price has shot up to Rs 81.90 per kg in the same period this year. Argentina and Vietnam have emerged as major exporters of tea to India.
Meanwhile, two leading tea auction houses in the country, J Thomas & Co and Contemporary, on Thursday tied up with State Bank of India for settlement account for cash-and-carry trade in tea.
Tea Board has recently introduced cash-and-carry trade for the gardens of Assam and North Bengal.
Source : The Economic Times