Indian tea exports losing out to Sri Lanka and Kenya

Tea exports have come down from 200 million kg in 1998 to 157 million kg in 2007. Industry players also estimate that exports will maintain status quo this year.  Pakistan used to procure tea directly from India till recently, but has turned to Sri Lanka now. "We have also lost market to some extent in Europe. Currently, Russia imports sizeable amount of tea from India," added Desai, who is also the chairman and managing director of WaghBakri Group.  However, tea exports to Russia have also declined to 30-35 million kg in 2007 from around 100 million kg in 1990.  Till 1998, total tea production in the country came to around 874 million kg, of which domestic consumption was around 650 million kg and 210 million kg was exported.  In 2007, tea production jumped to 945 million kg with domestic consumption up at 810 million kg. However, exports have come down to 157 million kg in 2007. As per the estimates of Tea Board of India, exports are likely to remain flat this year as well.  "Tea consumption is rising in the domestic market, while other tea growing countries such as Sri Lanka and Kenya have reported negligible domestic consumption," said Adarsh Chopra, president (tea), Gujarat Tea Processors and Packers, supplier and manufacturer of WaghBakri brands.  Globally, tea production is growing at a compounded annual growth rate (CAGR) of 2.9 per cent as against its consumption growing at 3 per cent. In India, tea consumption is increasing by 2.9 per cent annually against an 1.58 per cent growth in production.  "Increased consumption in the domestic market has led many players to focus here," he added.