India has spent as much as 90.77 per cent more on importing tea till January during 2020-21 fiscal over the same months of the previous fiscal.
This happened because of the country importing 65.21 per cent more volume paying 15.47 per cent more price on each kg on the average, reveals our analysis of the latest data available with the Tea Board of India.
The average price of the imported tea rose to ₹172.14 a kg till January in 2020-21 from ₹149.08 in the same months of the previous fiscal. This increase of ₹23.06 marked a rise of 15.47 per cent.
In dollar terms, the price rose to $2.31 a kg from $2.11 marking an increase of 9.48 per cent.
Unmindful of the rise in price, India imported a higher volume – 23.46 million kg (mkg) till January in 2020-21 compared to 14.20 mkg in the same months of the previous fiscal. This increase of 9.26 mkg marked a rise of as much as 65.21 per cent.
As more volume was imported at a higher price, the overall import bill rose to ₹403.84 crore till January in 2020-21 from ₹211.69 crore in the same months of the previous fiscal.
This increase of as much as ₹192.15 crore marked a growth of a whopping 90.77 per cent in the country’s import bill.
In dollar terms, the import bill rose to $54.20 million from $30.02 million. This increase of $24.18 million marked a rise of as much as 80.55 per cent.
Although India is a tea exporting country, in the post-WTO era, it has become impossible to block tea imports. India is importing tea from various countries.
Importers contend that majority of the tea is re-exported after value-addition by mixing with Indian teas.