COVID-19 impact: India’s tea exports likely to go down by 15% in 2021

The tea trade is bracing for a decline in exports to the tune of 30-40 million kg this 12 months as in comparison with 2020, as a result of availability of low-cost varieties within the international market and amid commerce restrictions in nations which have historically been robust importers, trade sources stated. The coronavirus-induced financial downturn in a lot of the world can be an element for falling shipments, they stated.

For the interval between January to March this 12 months, exports fell by 13.23 per cent as in opposition to the corresponding interval a 12 months in the past, and by 29.03 per cent in comparison with 2019, as per Tea Board India knowledge. Altogether, 45.86 million kg tea was exported from India between January to March in 2021. The determine was 52.85 million kg in 2020 and 64.62 million kg in 2019.

The dip within the share of shipments from North India has been extra in comparison with South India for the reason that final three years. Whereas the tea export share of South India fell by 5.41 per cent in 2021 between January and March in comparison with the identical interval in 2020, the decline was 25.85 per cent in comparison with 2019.

In case of exports from North India, the determine for the three-month interval was decrease by 17.83 per cent as in opposition to 2020 and 31.04 per cent in comparison with 2019. “Indian exports have suffered within the final two-three years resulting from very low costs of Kenyan and Sri Lankan tea.

“Kenyan tea public sale worth common is under 2 US {dollars} per kg, which is way lesser than our public sale common,” Dinesh Bihani, secretary, Guwahati Tea Public sale Consumers Affiliation (GTABA), stated. Kenyan tea is accessible for 1.8 US {dollars} per kg (Rs 130-135 per kg) on a mean, whereas for Indian tea, the common public sale worth is almost Rs 200-210 per kg, he added.

India had exported 208 million kg of tea out of the full manufacturing of 1,255.60 million kg in 2020, whereas shipments accounted for 252 million kg out of 1,389.70 million kg produced in 2019. One other tea trade supply identified that there’s very restricted home consumption demand of the beverage in Kenya and Sri Lanka, which implies that extra tea is accessible and focused for export.

About 80 per cent of it produced in India is bought for home consumption, as per a 2018 ‘Govt Abstract of Research on Home Consumption of Tea’ revealed by the Tea Board. Exports to Pakistan, a significant marketplace for Indian tea, have additionally stopped for the reason that final three years following escalation of pressure between the 2 nations, the trade supply added.

“The US sanctions in opposition to Iran can be a reason behind concern for Indian tea exporters,” he stated. Iran imported 9.98 million kg of tea between January and March 2020 at a mean value of Rs 263.14 per kg, which decreased to 4.57 million kg for the corresponding interval this 12 months, bought at a mean worth of Rs 246.81 per kg, as per Tea Board India knowledge.

“The worldwide financial system goes by way of a disaster as a result of COVID-19 lockdown and restrictions, which have led to additional international decline in demand for tea,” the supply stated.

Home consumption of tea can be anticipated to have gone down for the reason that onset of the pandemic final 12 months within the out-of-home sector (tea bought in railway stations, bus depots and cafeterias), although the precise determine is but to be surveyed, Bihani stated. system/story/covid-19-impact-indias-tea-exports-likely-to-go-down-by-15-in-2021-301062-2021-07-12?utm_source=rssfeed

Huynh Nguyen

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