South tea exports head north

South Indian tea performed better in exports by registering improvement in both quantity (by 16.6 per cent) and unit value (by 1.6 per cent) in the first seven months (January to July) of 2005.

Consequently, value realisation rose by 18.4 per cent. However, North India's performance in export in 2005 (January to July) was depressing as the total quantum of exports and value realisation were lower by 3.9 per cent and 1.3 per cent respectively, said the latest The United Planters' Association of Southern India's (UPASI) report on the tea sector.

These data indicate a reversal of trend for the coutnry as a whole in 2005. Tea exports declined by nearly 11.4 million kgs during January-July 2005 to 89.7 million kgs, compared with 101.1 million kgs during the corresponding period of last year.

"The only comforting factor in the otherwise bleak export scenario in the country is the increase in the unit value realisation irrespective of region," said a senior Upasi official.

The latest trend in domestic prices indicates that price realisation at all India level was only Rs 57.91 per kg during January-July 2005 compared with Rs 61.66 per kg during corresponding period in 2004, a decline of 6.1 per cent.

In South, with respect to CTC (cut, tear and curl), prices were lower by 2.2 per cent, while Orthodox prices recorded an increased of 3.1 per cent during Jan-Aug 2005 compared with same period last year.

The South India average auction price in 2004 was Rs 47.03 per kg as compared with Rs 40.28 per kg during 2003, while the national average prices were Rs 64.57 per kg in 2004 and Rs 56.27 per kg in 2003.

Imports
Tea imports into India during January-July 2005, saw a decline 5.2 million kgs at 9.8 million kgs compared with 15 million kgs during the corresponding period of last year. But the unit value of imports improved from Rs 45.63 per kg to Rs 55.68 per kg, which represents an increase of nearly 22 per cent.

The lower quantum of imports and high unit value import cost could be owing to implementation of Tea (distribution and exports) Control Order 2005, which lays stringent procedures for imports and re-export of teas.