Strong rupee dents tea exporters' income

As much as 55 per cent of the entire tea trade is conducted in US dollar and another 35 per cent is dealt in Euro both of which remained weak against the rupee this fiscal year

Even as India’s forex income from tea exports surged by 6.3 per cent, tea producers and exporters continue to reel under stress as the average price realisation of tea exports fell marginally this year. This was primarily due to the strong Indian rupee against the US dollar, Euro and lower price realisations from orthodox tea exports. 

Industry officials opined that on a year-on-year basis, the US dollar and the Euro fell between 3.2-3.4 per cent in the current fiscal year between April-August, which affected price realisations when converted from the US dollar to Indian rupee.

The reason for higher forex