Tea exports up, value down

Indian tea exports in the first nine months of the calendar were up 12.3 per cent in quantity terms but down 4.7 per cent in value terms over the corresponding period last year.

January-September exports stood at 126.16 million kg or Rs 1,057.9 crore. The surge in quantity was primarily on account of a 50 per cent increase in south Indian tea exports to 73.05 million kg.

Exports from north India fell 16.7 per cent over the corresponding last year to 53.11 million kg.

While quantities surged, unit value slid to Rs 58.37 from Rs 68.2 last year as south Indian teas fetch lower prices because of their quality.

This eventually pulled down the all India tea export unit value realisation during the period to Rs 83.85 from Rs 99.

In contrast, the export unit value per kilo of north Indian tea fell from Rs 118 from Rs 122 in the same period.

Traders said that the global production fall was behind the overall surge in quantity exports.

Unit value realised could have been much better if low grade orthodox tea consuming countries like Iraq and Iran had not returned to Indian tea with renewed vigour.

They said, "As a result of the increasing demand for low grade tea, traders are picking up more low value tea from countries like Vietnam."

Also, exports were seen rising even despite a fall in production, said traders.

While total Indian output in the first nine months of the year was estimated to be down by about 40 million kg owing to a 30 million kg shrinkage in the north Indian crop, exports went up by 13.83 kg million.