Tea exports in March down by half on low demand

Tea exports declined by nearly half in March this year to 11.90 million kg due to low overseas demand and payment problems from importing countries.

The country had shipped 23.49 million kg of the brew in March, 2010, Tea Board data showed.

During the first quarter of calender year 2011, exports fell by almost 27% to 39.62 million kg from 53.99 million kg in the year-ago period.

According to industry experts, the slump in exports has been continuing from the end of the last year due to subdued demand from major importing countries and payment problems.

"The exports have been down since the end of last year due to subdued overseas demand and payment problems from Iran and Pakistan due to which exporters have been reluctant to go for further contracts," Indian Tea Association Joint Secretary Sujit Patra told PTI.

Tea exports in North India have also been down, following the slump from last year but they will pick up from June-July, he added.

North India exported 6.70 million kg of tea in March, 2011 as compared to 13.17 million kg in the year-ago period.

Exports of the brew from South India have also gone down by almost half to 5.19 million kg in the period under review as against 10.32 million kg in the same period last year.

"Tea exports from South India have been down in March this year due to the recent disturbances in West Asia and North Africa, which have impacted the shipments," United Planters Association of South India (UPASI) Commodities Head R Sanjith said.

The tea auction centres at Coimbatore and Coonoor, which primarily handle the overseas demands, have not had many overseas buyers this time, Sanjith added.

India's tea production increased by nearly 16% to 56.73 million kg in March as against 49 million kg in the same month last year on account of higher output in Assam, Tea Board data said.

In Assam, the production rose to 23.66 million kg in March as against 14.78 million kg in the year-ago period, but the output in South India and West Bengal declined.

India, the second biggest producer of tea in the world, accounts for about 28% of global tea production and around 14% of trade. There are about 1,600 tea estates in India. The industry employs more than two million people.