Tea exports see 10% growth in ’08

NEW DELHI: India recorded a 4% growth in tea production to 981 million kg in 2008 and raised tea exports by 10% to 196.03 million kg on the back of lower output in the largest tea-exporting nation Kenya and a price surge. According to the Tea Board, production between January and December 2008 rose to 980.81 million kg from 944.64 million kg, while output in December has risen to 58.61 million kg as against 50.16 million kg in the previous year.

Similarly, exports increased to 196.03 million kg in 2008, compared with 178.75 million kg in the previous year, while shipments in December rose to 20.51 million kg as against 18.38 million kg a year ago.

India���s tea exports continued to benefit from the shortfall in Kenya, which had earlier announced a 16% decline in production in the first eight months of 2008.

High prices in the global markets for Indian tea, coupled with the resolution of trade-related complications with Iraq, which is a major importer, have contributed immensely to the increase in the exports, an industry expert said.

Prices of Indian tea shot up to Rs 146.99 per kg in December 2008, compared with just Rs 97.75 a year ago, while the average price between January and December last year rose to Rs 116.39 per unit, compared with Rs 101.26 in the year-ago period.

India is the largest producer of black tea in the world, though China remains the top tea producer with output touching 1,094 million kg in 2007 as against India���s 945 million kg.

Kenya led the pack of exporters with estimated shipments of 345.88 million kg in 2007 due to lower consumption at home. India remained at fourth position with exports touching 179 million kg in 2007.