India's exports may fall 5%

India’s tea exports are likely to drop marginally to 190 million kg in 2010-11 (April-March) due to rising domestic demand and expectation of slight fall in output this year, said N. Muraleedharan, adviser, Tea Research Foundation at United Planters’ Association of Southern India (Upasi).

The country exported around 200 million kg tea last year, he said. India’s exports during April-July period stood at 53.31 million kg, down from 54.78 million kg during the same period last year. “Domestic consumption of tea is rising every year, which might impact exports marginally this year, but in the coming few years, the new re-plantation projects would ensure higher output and in turn boost exports,” Muraleedharan said.

Presently, India’s annual tea consumption is around 700 million kg. The country’s tea output in 2010 is likely to fall by 2-2.5 per cent from around 991 million kg produced last year due to bad weather in Assam, according to Basudeb Banerjee, chairman, Tea Board of India.

Tea Board is planning to replant 215,000 hectares over the next 15 years of the country’s current total acreage of around 560,000 hectares. “A lot of new area is being covered under tea in north India by small growers, which would ensure ample stocks to meet domestic and export demand in the coming years,” Muraleedharan said.