Glad tidings

Calcutta, Dec. 19: Tea exports during January to October rose to 150.82 million kg from 148.47 million kg in the year-ago period as countries like Pakistan, Iraq and Russia stepped up purchases.

Till September this year, exports stood at 131.55 million kg against 129.56 million kg last year.

The export value till October was Rs 1,357.08 crore, a significant increase from Rs 1,161.70 crore till September.

“A positive sign is that after a long time, the Russians are looking at coming back to India for orthodox tea. Companies would, therefore, be encouraged to take up orthodox production, which was on a decline,” said Deepak Atal, managing director, Apeejay Tea Group.

The markets crashed in October and November but have revived in the last two weeks. The prices for good quality Assam were also higher by Rs 10.04 per kg, Atal added.

India overtook Kenya twice in the last few months as the top import destination of Pakistan.

The neighbouring country is expected to increase its sourcing from India to 20 million kg.

The much-needed spurt in exports comes at a time when India’s production till October was 820.45 million kg, marginally up from 797.45 million kg in the corresponding period last year.

There was a 4 million kg decline in crop production in Malawi during the same period. Kenya’s production till October was down by 24.2 million kg.

According to Indian Tea Association (ITA) status paper, domestic consumption would continue to grow at 3.3 per cent per annum. Exports are unlikely to exceed 200 million kg in the short term.

Stock levels are running low and 2007 is expected to start with lower inventory and better balance between supply and demand.