Page 2 - Tea Exports

Tea cos to witness 8% fall in revenue on decline in exports: Crisil Ratings

The tea industry is likely to witness an 8 per cent year-on-year decline this fiscal due to decreasing export volume following the rise in supply from Sri Lanka, a report said on Friday. The operating profitability of the industry will fall for the second year in a row, shedding 100 basis points (bps) to 5 per cent due to lower realisation, Crisil Ratings said in a report. Profitability had fallen 150 bps last fiscal, primarily because of an increase in wages, the report said, adding that in FY23, wages that constitute 20 per cent of total input cost were hiked by 15 per cent. However, low leverage and negligible capital expenditure (capex) will keep credit profiles stable, the report stated. The tea industry will report 8 per cent year-on-year degrowth in revenue this fiscal, led by a decline in export volume, the agency said. "Domestic demand, which accounts for 82 per cent of sales volume, should remain steady at 1,100 million kg this fiscal. However, exports, which make up 18

Tea exports declines by 0.81% to 96.49 million kg during first half of 2023

Tea exports during January to June declined 0.81 per cent to 96.49 million kg as against 97.28 million kg in the corresponding period a year ago, according to Tea Board data. Exports from North India, comprising mainly Assam and North Bengal, marginally increased to 59.16 million kg compared with 59.09 million kg in the year-ago period, it said. However, shipments from South India declined to 37.33 million kg in the reporting period as against 38.19 million kg in January-June 2022. In the last calendar year, overall tea exports from the country stood at 231.08 million kg, registering a rise of 17.57 per cent over 2021, which was at 196.54 million kg. Secretary-General of Indian Tea Association (ITA) A Raha said it is unlikely that exports during 2023 will surpass the figures of 2022. The main cause for this is a slump in demand in the export markets and drop in shipments to Iran, due to payment issues with that country. Iran has traditionally been a major importer of Indian tea a

Indian tea after 'Sri Lanka effect': Challenge will be to focus on quality

Exports gained when production in troubled island nation dropped sharply in 2022; to maintain that momentum as its competitor bounces back, domestic industry's challenge will be to focus on quality

Tea exports to Russia soar 21%, belying war worries; some lost share gained

Sri Lanka crisis, sanctions on Russia that made sourcing from other countries difficult help domestic industry post better numbers

Tea exports up 18% to 185.31 mn kilograms in first 10 months of 2022: Data

Tea exports from India have increased 18.1 per cent at 185.31 million kilograms between January and October 2022, from 160 million kilograms in the similar previous first ten months. According to Tea Board data, the CIS block countries remained the largest importer at 43.65 million kilograms during the first ten months of 2022, up from 36.95 million kilograms in the same period the previous year. The UAE surfaced as the second largest importer at 32.95 million kilograms during the period in 2022, substantially higher from 12.45 million kilograms in the previous similar period. Iran, which had been a big importer of the Indian orthodox variety, imported 19.52 million kilograms in the period January to October 2022, lower from 21.45 million kilograms in those 10 months in 2021. Secretary general of Tea Association of India (TAI) P K Bhattacharya said that though shipments to Iran had fallen, the silver lining is that UAE has surfaced as a major importer after the CIS block. Tea indu

Tea industry facing multiple challenges in wake of Covid pandemic: Experts

The tea industry has been no exception to the ravages of the Covid pandemic over the last two years, as it grapples with low prices and high input costs, with stakeholders calling for more focus on quality and boosting exports. Production, too, has seen a decrease in the last few years since the onset of the pandemic due to restrictions on plucking -- from 1,390 million kg in 2019 to 1,258 million kg in 2020, 1,329 million kg in 2021 and 1,050 million kg till October this year. According to industry experts, the fall in production had helped in higher price realisation at the auctions. Secretary General of Tea Association of India (TAI) Prabir Bhattacharya said though the average auction price touched Rs 206 per kg in 2020, it fell to Rs 190.77 per kg the following year. So far in 2022, the average price has been Rs 204.97 per kg, he said. The increase, however, is concomitant with rise in wages across north India, besides hike in the cost of energy, fertilisers and logistics, ...

Centre seeks info from embassy on Iran's bar on rice, tea imports

'As of now, there has been no confirmation from the authorities and the response from the embassy in Tehran is also taking time'

Tea exports rise 14.8% to 140.28 mn kgs in Jan-Aug period this year: Data

Exports of tea from India increased by 14.8 per cent to 140.28 million kilograms in the first eight months of the 2022 calendar year, according to Tea Board data. Tea shipments during the January-August period in 2021 stood at 122.18 million kilograms (mkgs). The CIS countries, including Russia, Ukraine and Kazakhstan, remained the largest importer of Indian tea with 30.56 mkgs in the first eight months of 2022, marginally higher than 29.13 mkgs shipped out to these nations in the year-ago period, the data said. Sources in the industry said that tea exports did not pick up substantially due to shipping and container costs which skyrocketed due to the war between Russia and Ukraine. After the CIS countries, UAE was the second largest importer at 23.84 mkgs, a rise of 157 per cent from 9.27 mkgs in the similar period in 2021. Owing to economic sanctions imposed by the US on Iran, tea shipments to the west Asian country also failed to increase in the first eight months of 2022. Expo

Tea Board seeks Rs 1,000-crore support for industry for next five years

The Tea Board has sought an assistance of Rs 1,000 crore for the industry in the next five years starting 2022-23. Chairman of Tea Board Saurav Pahari said that in the budget submitted to the Union Commerce ministry, focus has been on handholding the small tea growers (STGs) which contribute to 52 per cent of the total production in the country. "We have sought an assistance of Rs 1,000 crore in the budget submitted to the ministry for a period of five years starting 2022-23", Pahari told reporters after the AGM of Indian Tea Association (ITA) here on Thursday. He said that the budget is primarily intended to handhold the STGs which contribute to 52 per cent of the country's production volumes. Pahari said the Tea Board had also sought subsidy for orthodox tea production which has a good export market. "It is good to note that the tea industry on the whole now acknowledges the contribution of the STGs. It should be collaborative effort between the big tea planters and the STGs for

Why are nearly half of Darjeeling's tea estates looking out for buyers?

Liquidity challenges amid high wages, falling demand and prices are brewing trouble for the "champagne of the teas"

Iran, Taiwan reject Indian tea shipments citing phytosanitary issues

Taiwan and Iran have rejected three containers of tea sent from India due to phytosanitary issues and presence of pesticides beyond permissible limits

Tea Board targets 300 mn kg of tea exports by 2025, says Chairman

On exports, Indian tea will aggressively compete with Kenya and Sri Lanka, and also explore markets that have not been aggressively targeted so far

Sri Lanka crisis opens tea export opportunity that India may miss

Sri Lanka mainly produces orthodox tea, which tends to be harvested and processed by hand. It is popular with tea drinkers in Russia and some eastern European countries.

India's tea exports to Russia face shipping snags, payment delays

Uncertainty looms large over one of India's largest tea markets; exporters scramble to get state help.

Covid pandemic, Russia-Ukraine conflict impacting export: Tea industry body

A body of tea planters on Saturday said exports of the commodity will be adversely impacted due to the Russia-Ukraine conflict. The shipment of Indian tea has already been hit by the COVID-19 pandemic, and the geopolitical situation after Russia's invasion of Ukraine would aggravate it further, Tea Association of India (TAI) president Ajay Jalan said. The payment issue with Iran, one of the largest importers of Indian tea, is also another challenge for tea exporters, he said. Addressing the 35th biennial general meeting of TAI, Assam Branch, Jalan said, "I stand before you at a critical juncture when the world is witnessing a major war in Europe wherein the Western countries have swiftly introduced draconian economic measures." The volume of India's tea export to countries in the Commonwealth of Independent States (CIS), including Russia, is 58-65 million kgs, he said, adding that "the war is bound to affect trade in this region". Coupled with the fact that India has an ongoing .

Russia-Ukraine war: India eyes alternative markets for tea export

Virtual meetings are being held with buyers in some countries

Tea exports dip 6.8% to 195.5 mn kg in CY2021, shipment value remains flat

Tea exports during the 12 months of 2021 declined marginally at 195.50 million kilogramme from 209.72 million kg during the previous similar period, according to latest Tea Board data.

Russia-Ukraine crisis: India's Tea planters and exporters likely to be hit

Western sanctions and disruption of payments in dollars, as well as transhipments to Russia, are expected as a fall-out of Russia launching an attack on Ukraine on Thursday

India's tea exports likely to be hit due to Russia-Ukraine crisis

Tea planters and exporters are "extremely worried" over the possible impact on their shipments to Russia, India's second largest buyer of tea, in the wake of the Russia-Ukraine crisis. Western sanctions and disruption of payments in dollars as well as transhipments to Russia are expected as a fall-out of Russian troops launching an attack on Ukraine on. "The Russian market for Indian tea is extremely important as there are payment issues for shipments to Iran, another vital tea export destination. Around 18 per cent of India's tea shipments go to Russia," India Tea Association chairperson Nayantara Palchoudhuri told PTI. In the event of the conflict and possible imposition of sanctions by the US, exports to Russia would be "impacted adversely in the upcoming season", she said. Palchoudhuri, however, said that any significant shock to the tea industry due to the crisis may not be witnessed immediately as the season is about to begin and the bulk of shipments takes place between May

Indian tea exports likely to fall nearly 15 per cent in 2021

The tea industry decline in exports to the tune of 30-40 million kg this year as compared to 2020, due to the availability of low-cost varieties in the global market, trade restrictions sources said