Tea exports fall 13% on Kenyan supplies, stronger rupee

The country's tea exports fell 13 per cent in the first half of the year from a year earlier after the currency climbed to a nine-year high and supplies from Kenya rose. Exports fell to 75.7 million kilograms in the six months to June 30 from 87.5 million kilograms a year ago, Sujit Patra, joint secretary at the Indian Tea Association, said.

Tea production in Kenya, the biggest black-tea exporter, rose 21 per cent to 32 million kilograms in May because of good weather, the Tea Board of Kenya said on June 22. The appreciation of rupee rose to a nine-year high last month against the dollar, prompting exporters to sell more domestically, Patra said."Exports to dollar-denominated markets were lower because of the rupee's gains against the dollar,'' Patra said today in a telephonic interview from Kolkata. "Kenyan supplies rebounded after last year's drought and that increased competition,'' he added.

The country's tea exports in June were a third less from a year ago at 13.4 million kilograms, according to the association. Kenya's exports in May rose by a fifth to 33 million kilograms, according to the Tea Board of Kenya.

Output in the first half of this year was little changed at 334.7 million kilograms compared with 333.3 million kilograms a year earlier. June's output was 108 million kilograms, up from 107 million kilograms during the same period a year earlier.