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.

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