According to the Tea Board figures considered at its September 16 meeting, tea exports, during July 1999 alone registered a decline of 7.60 million kgs in quantum and Rs 105.51 crore in value realisation over July 1998.

The figures on destination-wise export of tea from India for the period April to June 1999 over April to June 1998 indicate a decline in export of tea from India to Russia, Kazakhistan, Uzbekistan, UK, Netherlands, Germany, Poland, UAE, Iran, Iraq, ARE, Afganistan, Japan, Pakistan besides few other countries. As far as the decline in exports to Pakistan is concerned, Pakistan has bought most of its requirement from Kenya (26.55 million kgs during January to April 1999) followed by Indonesia (4.68 million kgs), Bangladesh (2.19million kgs), Tanzania (1.37 million kgs), Rwanda (1.34 million kgs) and Sri Lanka (1.02 m kgs). The Indian tea imports to Pakistan during January to April, 1999 was only 0.28 m kgs.

Exports to Russia, which has been the biggest market for Indian tea exports, have been declining from quite some time now. However, with the Russian government allocating Rs 430 crores to five public sector undertakings exclusively for tea purchases, the Indian tea exports to Russia would increase substantially. Moreover, the government has already allowed consignment sale of tea exports to Russia against the rupee credit and it is hoped that exports would pick up soon. Further, the latest reports being received from Moscow indicate a recovery trend in the tea market and it has been noticed that some of the major tea companies have started buying tea.

It is expected that the coming months would witness heavy buying of tea especially to meet the winter season demands. The reason for decrease in exports to Germany has beenattributed to the overall decline in tea imports by Germany. In case of Egypt, the ARE had joined the COMESA with the result that Kenyan tea would get a better deal there with only three per cent import duty as against 30 per cent for Indian and Sri Lankan tea.

It is learnt that efforts were on to take the issue at the governmental level at G-15 meeting to persuade ARE to give preferential treatment also for India and Sri Lanka. It may be mentioned here that during the recently held meeting of the tea producing countries of India, Sri Lanka and Bangladesh, a proposal was mooted to establish a COMESA like set up for preferential trade among the members of the SAARC countries. It is learnt that it has been agreed to establish a separate association in the name of Tea Association of South Asia (TASA) with initial members from amongst the SAARC region and later on countries like Thailand etc could be included.

Talks with Pakistan are still on over its joining this set up.

Whereas, Indian exports to somecountries have decreased, there are indications of export recovery to some countries including Ukrain, USA, Saudi Arabia, South Africa and Australia during April to June 1999 over April to June 1998.