Tea Exports Down 2.05% In Jan-May

Tea exports from India fell 2.05 per cent during January-May to 61.04 million kg from 62.32 million kg in the corresponding period of 2001. Export earnings from the commodity in the first five months of 2002 also declined 14.10 per cent year-on-year to Rs 495 crore, a Tea Board official said.

Indian tea is exported to more than 80 countries and accounts for nearly 15 per cent of the global tea trade. Exports have been hit by competition from Indonesia, Bangladesh and Sri Lanka, and falling demand from traditional buyers like Russia and the UK.

The official, however, added that India was likely to export 200 million kg of the commodity in 2002, up 11 per cent from 2001 because of an expected increase in demand from Iraq, Libya, Syria and Afghanistan.

Moreover, the prospects of export to Pakistan had also become bright, the official said. He added that India had recently announced a 5 per cent reduction in duties --- from 30 per cent to 25 per cent --- which would boost tea exports.

Production of tea in the first five months of the current year fell 8.15 per cent to 187.61 million kg from 204.26 million kg during the same period in 2001, the official said.

The decline in production was in line with the global decrease in the tea crop. Tea production was down by around 23.1 million kg during the year.