Tea exports to remain flat in '08

The tea industry in the country is unlikely to witness a significant surge in exports. The Tea Board of India estimates the tea exports to remain flat in 2008. India had exported around 200 million kg tea last year.

"The tea exports in calendar year 2008 are likely to be in the same range as last year. India's tea exports are expected to be around 200 million kg this year," Tea Board of India chairman Basudeb Banerjee told media people after addressing the annual general meeting (AGM) of Western India Tea Dealers Association (WITDA) in Ahmedabad.

 

Traditionally, Russia has been the largest importer of Indian tea, followed by the UK and UAE. India exported around 40 million kg of tea to Russia and 20 million kg each to the UK and UAE, last year. Countries such as Egypt, Iran and Iraq also import tea from India.

Egypt is yet another destination where tea exports are growing consistently. India exported around 4.9 million kgs of tea to the country last year and is likely to send around 8 to 10 million kg this year.

"Dubai is also emerging as the re-export hub of Indian tea. Dubai imports tea from India and re-exports to other countries," he added.

India is the world's largest producer of black tea. The consumption of tea in India was around 945 million in 2007, of which Assam contributed 51 per cent, West Bengal 24 per cent and southern India 25 per cent.

The board will soon launch a campaign for ice tea, targeted at the middle class. It is expected to spend Rs 3 to 4 crore every year for the generic promotion of tea.

The board is also looking at setting up MRL testing labs in association with private partners. "A sizeable amount of money will be pumped into MRL testing facilities," Basudeb said.