OUT OF FLAVOUR

Calcutta, Sept. 16: Tea exports this year are expected to be lower than last year’s figure of 203 million kg. However, the export target of 210 million kg has not been revised.

“As far as trends go, we are down by 20 million kg in the first seven months. It looks like we will not be able to match last year’s figures,” said Tea Board chairman Basudeb Banerjee.

The appreciation in the rupee has hit domestic exporters hard. Kenya, which had a bumper crop this year, reported a 48 per cent jump in exports. Last year, the drought in Kenya had helped Indian exporters grab a greater slice of the world market.

Local payment problems affected India’s trade with Iraq, a major export market. “Efforts are on to solve it at the earliest,” Banerjee added.

In 2006, India exported 42.13 million kg tea to Iraq and 42.99 million kg to the Commonwealth of Independent States.

Banerjee had recently visited Dubai and Muscat to explore opportunities for export there. He also had a look at the Jebel Ali tea processing and trading centre in Dubai.

The West Asia and the Gulf account for almost 30 million kg of exports and this can be substantially increased, Banerjee said.

“There is a lot to learn from Dubai which has become a global re-export hub for tea. The Dubai tea festival has become a key event in the world calendar,” he added.

The Tea Board, along with the ministry of commerce, also wants to boost the export of North Bengal tea, which includes the Darjeeling variety. The region contributes around 20 million kg to exports, of which Darjeeling tea accounts for six million kg.

“We want to increase exports from the region and make Siliguri an export hub so that the tea need not be brought to Calcutta but can be processed and exported directly,” Jairam Ramesh, Union minister of state for commerce and industry, had said on a recent visit to the city.