Record Tea Harvest In Bangladesh

Bangladeshs tea output was a record 55.1 million kg in 1996, but its exports eased as yields in many tea growing countries soared, dampening international demand and prices, traders said yesterday.

They said Bangladeshs 1996 figure surpassed production levels of 52 million kg in 1995 and 50.5 million in 1994. We are hoping for another good harvest this year, but it all depends on the weather, said an official with National Brokers Limited.

Last years production target was 54 million kg and the country may fix this years production target at around 56 million kg, he said. Bangladesh exported 24.2 million kg in 1996 compared with 25.6 million kg the previous year. The export shortfall will not pose a problem as local consumption is increasing by one million kg every year, a tea exporter said.

He said bumper crops in major tea producing countries last year had pushed down the prices of the beverage in world markets.

India produced 737.3 million kg between January and November 1996 against 705.5 million kg the previous year. Kenyas yield was 233.7 million kg against 222.5 million and Sri Lankas was 233.5 million kg, up 8.2 million kg from 1995.

Traders also blamed lingering political instability in Bangladesh for the decline in exports in 1996.

They said many tea importers swtiched to other markets after Bangladesh failed to maintain shipment schedules due to port shutdowns as a result of labour unrest and strikes.

Violence at politically motivated protests also forced the suspension of several weekly auctions and dampened importers enthusiasm Traditional buyers of Bangladesh tea, such as Australia, Iran and Nepal, remained absent at tea auctions in the year, the traders said.

Now that the situation has improved since the peaceful elections in June last year. I hope exports will pick up this year, said one trader.

Poland was the biggest importer of Bangladeshi teas, taking 7.3 million kg, but this was less than the previous years 10.5 million kg. Sudan bought 5.0 million kg against 4.1 million in 1995, according to official figures.