Coonoor, March 30 According to the latest information available with the Tea Board, India exported 14.87 million kg of tea to Egypt in 2008 against 5.14 million kg in 2007.
Egypt paid an average price of Rs 73.91 a kg against Rs 64.55 in 2007. With both the volume and value increasing, the overall earning from shipment to Egypt rose significantly to Rs 109.90 crore in 2008 from a mere Rs 33.18 crore.
This made Egypt India’s fifth largest importer in 2008 accounting for 7.58 per cent of the total volume shipped and 4.82 per cent of the total sum earned.
Significant volumes
But, Egypt has not been buying significant volumes in recent weeks. With India Tea Promotion Centre (ITPC) scheduled to be opened in Cairo in April, hopes are being built for increased exports. This Tea Board-UPASI joint initiative has promised to canvass orders, conduct buyer-seller meets in different parts of Egypt and make importers pay auction-level prices.
Since 90 per cent of the 78 mkg Egyptian market is under Kenyan tea supplies, a definite base has to be developed for constant supplies from India; otherwise, Egypt will shop in India only when Kenyan supplies dry up. The Tea Board has promised pre-shipment inspection for supplies to Egypt. This must be reciprocated with an assured market for Indian teas at market-prices.
The Egyptian Government imports around 25 mkg for ration cardholders. Private sector imports around 53 mkg. The per capita consumption is around one kg. The bulk of the consumption is CTC dust grades for around $ 1.75 a kg. With Kenyan supplies turning expensive vis-À-vis low volumes, Egypt is looking for cheaper teas from South India.
Tea exporters who have returned after exploring the Egyptian market contend that it is tough for India to supply the entire volume which Egypt needs. “South India has better quality than some Kenyan teas we saw there. We should get around $2.25 a kg if we establish ourselves as reliable suppliers, not fly-by-night operators,” an exporter told Business Line.
ITPC is aiming at exporting 20 mkg in 2009 and 30 mkg next year.
Source : Business Line