Production loss hits Indian tea exports

Indian tea exports declined in 2014 as Assam Orthodox variety suffered 20-million kg production loss due to delayed rains, Commerce and Industry Minister Nirmala Sitharaman said on Wednesday.

In a written reply in the Rajya Sabha, Sitharaman said that though India ranked second in production and fourth in exports, lower demand in Iran, Russia and the US, lower prices from Africa at $2 per kg in the international market and lower demand from Bangladesh impacted export of the beverage.

Unlike in India where domestic demand for tea is ever growing, Kenya and Sri Lanka have low demand and hence are dependent on exports.

"Kenya, producer of crush, tear and curl (CTC) tea, and Sri Lanka, producer of Orthodox variety, have emerged as major exporters of the plantation commodity in the international market," the minister said.

Prices of African tea declined $1 per kg due to record production for two consecutive years in Kenya and as a result, its teas are being sold at $2 per kg in the international markets.