May tea exports up 20%

Price rise in Kenya due to drought seen as trigger.

The country's tea exports in May rose 20 per cent to 14 million kg from a year ago, according to the Tea Board data. Exports in May moved up, after falling in April, partially on increased buying following rise in prices of Kenyan tea due to drought in Kenya.

Tea output in May fell 6.71 per cent to 69.50 million kg, the data said. "Adverse weather condition was responsible for fall in India's production. Exports rose on increased buying from traditional importers following a spurt in prices of Kenyan tea due to drought in that country," an industry official said.

Destination wise break-up of tea exports is not available, however, the industry estimates that exports to Pakistan and West Asian countries rose during May. These countries traditionally purchased a huge quantity of tea from Kenya.

In value terms, exports in May stood at Rs 112 crore, compared with Rs 116 crore a year ago, it said.

According to a tea company official, the rise in exports could also be due to April export orders being shipped in May.

Exports in January-May fell 13.33 per cent on year to 59.44 million kg, it said. While exports, in value terms, during the period slipped to Rs 500 crore from Rs 635 crore due to a fall in quantity and realisation per kg.

The country's tea production during the first five months of 2006 was down 6.44 per cent to 223.90 million kg. Kenya has emerged as the closest competitor of India in the last decade in export of cut tear and curl teas because of its low cost.

Kenya's tea export in May increased to 28.1 million kg from 26.4 million despite apprehension of a fall due to high cost. The country's tea output during the month was down 8 per cent to 26.4 million kg.