Indian tea exports have touched a record high of 240.7 million kg in 2017, surpassing the previous high of 241.3 million kg achieved in 1981, according to provisional figures released by the Tea Board. Five importing countries, including exporters Sri Lanka and China which are India’s rivals in the global arena, helped India reach this export level. Indications are that the figure will rise as returns are still being received by the regulator.
‘Higher price’
In several countries, including the U.S., Indian teas were sold at prices which were higher than the average export price of $3 per kg, and encouraged by this export buoyancy, a 15% rise to 275 million kg by 2020 now seems achievable.
Exports were higher by 8.2% in volume and by 5.9% in value at ₹4,731.7 crore, the regulator said in a statement. In dollars, exports rose 9.3 % to $726.7 million. India exported 222.5 million kg in 2016. The unit price of Indian teas was higher at $3.1 per kg against $2.9 in 2016. The performance might have been better but for the Darjeeling agitation (which resulted in a 70% production loss) and the appreciation of the rupee.
Both tea-growing regions — north and south India — registered higher exports in 2017 over the previous year.
The biggest contributors to this performance was Egypt, which increased imports by 166%, followed by Sri Lanka, whose imports jumped 84.8 % and China to which Indian tea exports rose 50%.
While Iran had imported 28 million kg in the year, Egypt’s imports stood at 10 million kg. China increased its imports to 8.3 million kg buying black tea, to cater to growing demand among the its youth. “The performance could be attributed as much to the several delegations that were mounted by the government during 2017 as also the industry’s servicing of its exports,” said Indian Tea Association Secretary Sujit Patro. “There was adherence to quality [and] packaging as per contracts helped increase exports.”
During 2017, Indian tea was showcased at food shows and through delegations at USA, Russia, Australia, Germany and Chile. Azam Monem, chairman, ITA, said that there was a marked preference for Indian teas in several markets and the delegations had also helped showcase the bouquet of teas available. Confident about the sustainability of exports, trade and industry were now chasing a 275-million-kg target by 2020.
He added that the Centre could help by increasing the merchandising export incentive subsidy to 11% from 5% now. Former Tea Board Chairman and presently a senior official at the Union Commerce Ministry, Santosh Sarangi, had said at the ITA’s annual general meeting last year that the Tea Board needed to move away from being a body for disbursing subsidies to one that aimed at promoting sustainability, value addition, marketing and R&D.
The cost of administering the subsidies far outweighed the quantum given to the industry, he had said.
