EXPORTS -- 5:

INDIA’S TEA EXPORTS SLIDE 5% IN 2016

P S SUNDAR

India’s tea exports in calendar 2016 dropped by 5.20 per cent over 2015 but with average prices increasing by 4.79 per cent, the decline in the overall earnings was contained at a marginal level of 0.65 per cent, shows our analysis of the data available with Tea Board. 

In all, 216.79 mkg of tea was exported from India in 2016 against 228.66 mkg in 2015, marking a decline of 5.20 per cent.    

In US dollar terms, the average price was flat in both the years at $ 2.97 a kg.  However, because of exchange fluctuations, the unit price increased to ` 199.60 a kg from ` 190.47 in 2015, marking a growth of 4.79 per cent.   

The higher price reduced the intake resulting in the volume shipped to fall by 12 mkg.   Consequently, the overall export earnings dropped to ` 4327.04 crore from ` 4355.32 crore.  Because of the higher price, the overall realisation dropped only by 0.65 per cent.    

In US dollar terms, this meant a fall to $ 644.15 million from $ 678.78 million – down by 5.10 per cent.

Hence, both the volume shipped and the earnings in dollar and rupee terms were lower in 2016 compared to 2015.   Almost every country imported a lower volume in 2016.

“The increased supply of 3.65 per cent over 2015 and the general reduction in demand for high-priced teas in the backdrop of volatile politico-economic conditions in some countries besides the trade disruptions following demonetisation resulted in lower shipments”, an exporter said.

“With Kenya increasing its supplies by 72 mkg due to excess production and lower domestic consumption, India faced competition for its CTC teas in global market”, he explained.  

Volume-wise, Russia continued to top India’s export table at 44.20 mkg (2015: 47.44 mkg), followed by Iran 22.75 mkg (22.06 mkg) and UAE 16.60 mkg (16.18 mkg).

Value-wise, India got the highest value of ` 641.27 crore (650.76 crore) from Russia followed by ` 589.85 crore (` 569.65 crore) from Iran and ` 373.32 crore (` 366.74 crore) from the USA.

Pakistan, the world’s second largest importer after Russia/CIS,  imported 12.77 mkg worth ` 124.99 crore in 2016 from India against 19.45 mkg worth ` 183.44 crore in 2015.   Uneven political equations between India and Pakistan and adequate supplies from Kenya resulted in Pakistan picking up only teas at medium and low prices from India.

(response can also be sent to: pssundar.coonoor@gmail.com)   

PRODUCTION -- 17:

GLOBAL BLACK TEA OUTPUT IN 2016 UP 3.65 PER CENT

P S SUNDAR

Global black tea production has increased by 3.65 per cent in calendar 2016 over 2015.

“Our compilation of the official data received from various producing countries shows that the total black tea production in 2016 rose to 2181.78 million kg (mkg) from 2104.87 mkg in 2015.   This increase of 76.91 mkg marked a growth of 3.65 per cent”, Rajesh Gupta, compiler of Global Tea Digest 2016 told me.

The highest increase of 72.01 mkg came from Kenya with its production rising to 471.22 mkg.  Favourable climate conducive for increased harvest helped the output to rise significantly.

India continued to top the black tea table as its production rising to an all-time high of 1239.15 mkg, up by 30.49 mkg.   Here, North India produced 45.85 mkg more to reach 1026.94 mkg, while South India’s output declined by 15.36 mkg to dip to 212.21 mkg due to prolonged dryness.  

Bangladesh posted an increase of 16.34 mkg to reach 82.68 mkg.

These increases were large enough to offset the sharp decline of 36.48 mkg in Sri Lanka to dip to 289.61 mkg.  Adverse weather pulled down harvest in many regions for most part of the year.

Uganda and Tanzania also posted a lower production due to unfavourable climatic conditions.

(response can also be sent to: pssundar.coonoor@gmail.com)

PRODUCTION -16:

NILGIRI TEA PRODUCTION UP 26% IN                                      JANUARY

P S SUNDAR

TEA CORPORATE SCENARIO... 

Tea production in January in The Nilgiris, the largest tee growing district in South India, has increased 26 per cent over January 2015.

Tea companies have reported to Tea Board that their production last month totalled 0.82 million kg (mkg) against 0.65 mkg in January 2015.

This increase of 0.17 mkg marked a growth of 26.15 per cent.

Favourable weather contributed to increased cropping and manufacturing levels.  All agro-climatic zones in the Nilgiris received a higher rainfall last month than in January 2016 and even the decennial (10-year) average for the month.   Tea scientists said that soil temperature and moisture, humidity and sunshine period – all were favourable in most agro-climatic zones. 

The five-year average production for January was 0.87 mkg.  This meant that the production declined by 5.75 per cent over the five-year average.

(response can also be sent to: pssundar.coonoor@gmail.com)

FOR THE RECORD -- 27:

M N TRUST'S OLD AGE HOME IN TEA HUB OF NILGIRIS 

IITC MEET WITH INDONESIAN MINISTER ..

KAMC PROGRAMME FOR TEA PLANTATION MANAGEMENT ..

NCA-KAMC PROGRAMME OF CULTURAL HIGHLIGHTS WITH TEA EXECUTIVES  

HONOUR TO MARIAM AGNISH 

(article in Contemporary BTea Time, Oct-Dec 2016)

BY P S SUNDAR

(response can also be sent to: pssundar.coonoor@gmail.com)

PRODUCTION -- 15:

INDIA’S TEA PRODUCTION IN 2016 SOARS TO ALL-TIME HIGH LEVEL

BY P S SUNDAR

India has created a new record in tea production in calendar 2016.

The country which has been posting higher production year after year has reached an all-time high of 1,239.15 million kg (mkg) in 2016.

“Tea Board has just now released the production data for December 2016 as 62.74 mkg against 57.29 mkg in December 2015.  This increase of 5.45 mkg marked a growth of 9.51 per cent”, Rajesh Gupta, compiler of Global Tea Digest 2016 told me.

This helped the overall production to remain higher than 2015 overcoming the shortfalls in some months.

“The overall production in 2016 rose to 1,239.15 mkg from 1,208.66 mkg in 2015.  This increase of 30.49 mkg marked a growth of 2.5 per cent”, Gupta noted.

This increase of 30.49 mkg has been the highest increase over the previous year in the recent past because although production has been reaching new records year after year, the rise has been only marginal over the previous years.

This is despite South India producing a lower volume in 2016 than in 2015 because of a significant increase in North Indian output.

North Indian production rose to 1,026.94 mkg from 981.09 mkg, marking a five per cent growth.  Assam continued to top Indian production table at 642.18 mkg (up 2 per cent) followed by West Bengal 357.47 mkg (up 10 per cent).   Darjeeling, however, posted a seven per cent decline to dip to 8.13 mkg.

South Indian output fell by seven per cent to 212.21 mkg from 227.57 mkg due to adverse weather for most part of 2016.   Tamil Nadu lost 11 per cent to dip to 145.41 mkg from 163.09 mkg.

(response can also be sent to: pssundar.coonoor@gmail.com)

   

FOR THE RECORD -- 26::

GLOBAL TEA DIGEST 2016 DEDICATED TO TEA INDUSTRY ..

DEMONETISATION IMPACT ON TEA INDUSTRY ..

CTTA TURNOVER IN 2016 UP Rs 55.01 Cr..

CTTA AUCTIONS BEGIN ON HAPPY NOTE IN 2017..

TEA PRODUCTION UP IN INDIA AND THE WORLD.. .

(articles in The Assam Review and Tea News, January 2017)

BY P S SUNDAR

(response can also be sent to: pssundar.coonoor@gmail.com)