Tea exports inch up by 4 pc in Aug; output rises 6 pc

NEW DELHI: Tea exports shot up by four per cent in volume in August due to a shortfall in output in Kenya-- a major producer - that continues to benefit the country, while shipments in the first eight months rose by 20 per cent.

According to the Tea Board, exports surged to 18.47 million kg in August against 17.78 million kg in the year-ago period, while shipments in the first eight months of this year shot up to 124.04 million kg, compared with 106.64 million kg in the corresponding period last year.

"The shortfall in Kenya -the largest exporting country - continues to help us by shifting buyers towards countries like China and India," a senior Tea Board official said.

However, the rise in exports has not been that dramatic in August, compared with a 53 per cent rise in July this year.

"This is the base effect. The base is higher in August last year and, therefore, the rise in shipment this August in the percentage term on Y-O-Y basis won't be much, though in volume terms, it remains around the July 2008 level," an industry expert said. Exports had surged to 18.16 million kg in July 2008 against 11.88 million kg in the year-ago period.

In value terms, tea exports in August have shot up by 15 per cent to Rs 218.10 crore from Rs 189.15 crore in the year-ago period. The shipments between January and August rose to Rs 1,314.55 crore against Rs 1,099.42 crore in the same period last year.

Similarly, India's tea production, the second largest in the world, shot up by six per cent to 123.10 million kg in August, compared with 116.28 million kg in the same month last year. Output between January and August increased to 599.73 million kg against 576.07 million kg in the year-ago period.