 "Tea Board to try and push export")
The Tea Board says it has identified more export markets, to make up for a slide in shipments elsewhere.
"The government has added Chile and China to the list of markets," said Azam Monem, Indian Tea Association vice-chairman. The focus, it says, is KRUCIAL - Kazakhstan, Russia, USA, China, Iran, Arab Republic of Egypt and Latin America.
Exports have been slipping in recent years. From a high of 222 million kg in 2010, it dropped to 201 mn kg in 2014. The current year is not looking particularly good, too.
The unit price for exports during April 2014 to January 2015 was Rs 196.27 a kg, compared to Rs 202.60 a kg in the year-ago period. In contrast, during January-December 2014, prices at the Jakarta auction were down by Rs 14.75 a kg and Mombasa by Rs 18.03 a kg, though that at Colombo was higher by Rs 18.62 a kg.
"Firm prices have led to increasing competition from other producing countries, especially Kenya that has seen successive bumper crops," Monem said. Sri Lanka is also giving stiff competition.
Tea production is in one of two styles, termed orthodox and non-orthodox; the latter is also commonly referred to as CTC (crush, tear, curl). Kenya is entirely a CTC producer; orthodox production accounts for almost the entire produce of Sri Lanka. In India, CTC accounts for around 90 per cent of output. Thus, Kenyan tea is in direct competition with Assam CTC, while Assam orthodox is pitted against Sri Lanka. Malawi, Mozambique and Uganda's tea are of the same quality as South Indian tea.
India exports most of its orthodox production but only a small portion of CTC. Only 13 per cent of total North India (the term here refers to everything outside South India) production is exported. An ICRA report says most exports from North India are high-quality orthodox and CTC teas; South India exports medium to low quality teas that are used mainly as "fillers" in blending.
Over the past decade, annual exports have stayed around 200 mn kg. The strategy for each of the markets the Tea Board plans to focus on would be different. For China, it would be taken up at the diplomatic level, as there are non-tariff barriers. China is predominantly a green tea market but is warming up to black tea. "In Iran, there is a plan for joint promotion with packers. In Russia, the rupee-rouble mechanism needs to be worked on," Monem said.
The industry is hoping that June-September, the time for exports, would see better weather and so, more production. So far, a dry spell has affected production.
"The government has added Chile and China to the list of markets," said Azam Monem, Indian Tea Association vice-chairman. The focus, it says, is KRUCIAL - Kazakhstan, Russia, USA, China, Iran, Arab Republic of Egypt and Latin America.
Exports have been slipping in recent years. From a high of 222 million kg in 2010, it dropped to 201 mn kg in 2014. The current year is not looking particularly good, too.
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India happens to be the fourth largest tea exporter in the world, after China, Sri Lanka and Kenya. Traditionally, our major export destinations have been Russia, UAE and Britain. Though production has been growing consistently at a compounded annual rate of three per cent, exports have been on a decline or, at best, flat. The main reason is an increase in domestic consumption, which has ensured firm prices.
The unit price for exports during April 2014 to January 2015 was Rs 196.27 a kg, compared to Rs 202.60 a kg in the year-ago period. In contrast, during January-December 2014, prices at the Jakarta auction were down by Rs 14.75 a kg and Mombasa by Rs 18.03 a kg, though that at Colombo was higher by Rs 18.62 a kg.
"Firm prices have led to increasing competition from other producing countries, especially Kenya that has seen successive bumper crops," Monem said. Sri Lanka is also giving stiff competition.
Tea production is in one of two styles, termed orthodox and non-orthodox; the latter is also commonly referred to as CTC (crush, tear, curl). Kenya is entirely a CTC producer; orthodox production accounts for almost the entire produce of Sri Lanka. In India, CTC accounts for around 90 per cent of output. Thus, Kenyan tea is in direct competition with Assam CTC, while Assam orthodox is pitted against Sri Lanka. Malawi, Mozambique and Uganda's tea are of the same quality as South Indian tea.
India exports most of its orthodox production but only a small portion of CTC. Only 13 per cent of total North India (the term here refers to everything outside South India) production is exported. An ICRA report says most exports from North India are high-quality orthodox and CTC teas; South India exports medium to low quality teas that are used mainly as "fillers" in blending.
Over the past decade, annual exports have stayed around 200 mn kg. The strategy for each of the markets the Tea Board plans to focus on would be different. For China, it would be taken up at the diplomatic level, as there are non-tariff barriers. China is predominantly a green tea market but is warming up to black tea. "In Iran, there is a plan for joint promotion with packers. In Russia, the rupee-rouble mechanism needs to be worked on," Monem said.
The industry is hoping that June-September, the time for exports, would see better weather and so, more production. So far, a dry spell has affected production.