Tea exports in 2009 are likely to hover around 200 million kg (Mkg), registering a marginal increase over last year?s export of 189 million kg as the global slowdown may offset targets for the year.?We are trying to export 195-200 Mkg tea this year,? said Basudev Bannerjee, chairman, Tea Board of India.
In November 2007, Union minister of state for commerce and industries Jairam Ramesh said that the tea exports in 2008-09 were estimated to cross 200 million kg. Aditya Khaitan, managing director, Mcleod Russel India Ltd and chairman of the Consultative Committee for Plantation Associations said, ?It is praiseworthy if we are able to maintain even the 175-180 mkg-level, under the present circumstances.? Moreover exports at that level will also help check the price-level, he said.
Bigger markets like Egypt, which was a traditional market for Indian exports, have shifted to consume Kenyan tea. ?Exports to Egypt this year depend on how the African market performs, ? added Khaitan. According to Khaitan, demand in Russia, Iran and Iraq are not likely to pick up till the impact of recession is over.
?Exports started falling from the September-October period due to a payments-crisis. But that did not reflect about demand falling down in those countries,? Bannerjee said. Earlier, India was looking at the export to Pakistan increasing to 16 Mkgs in 2008-09 from 5.4 Mkgs in 2007. After terrorist attacks in Mumbai, Jairam Ramesh has deferred his visit to Pakistan. According to Bannerjee, there has not been any cancellation of orders after November 26. ?Tea exports to Pakistan will not be hurt due to the current political situation. Moreover, an Indian delegation will visit Iran on Friday,? he said.
Meanwhile, expecting larger demand in exports, tea manufacters like like Tata Tea and Hindustan Unilever have reportedly stepped up their procurement by 75%-80% in 2008 from the Guwahati auction centre, as against a previous procurement of 50%, of the total tea auctioned .
?We expected exports to much higher this year. Things were bullish till October 2008, but after that the effect of economic meltdown was obvious,? said Dipanjol Deka, secretary, Tea Association of India. “Tea exports will not be at the expected level as demand in Europe and the Middle-East is likely to go down,? he said. ?To increase exports, I think, we should go slightly deeper into existing markets rather than looking for new ones,? Khaitan said. The Tea Board and Indian Institute of Plantation Management have announced the establishment of tea councils in four states.