Trade Articles

Its a cheers time for the Indian tea industry as it is on a comeback stage with an increase in its production and export during the first 8 months of 2008. Moreover output between January-August, 2008 have shot up to 599.73 million kg in comparative of 576.07 million kg, of what it was in previous year. Tea export of India has triggered by 4 per cent in volume in august, 2008 due to the diminishing of output in Kenya. Similarly shipments during the first eight months have also risen up by nearly 20 per cent. Shipments in the first 8 months of 2008 have increased to reach at 124.04 million kg in comparison of 106.64 million kg of the same period of 2007. The Indian tea board has stated that the exports have shown an increasing pace and reach at 18.47 million kg in august this year as compare to 17.78 million kg in the corresponding period of the last year. The senior official of the Tea Board said that "The shortfall in Kenya -the largest exporting country - continues to help us by shifting buyers towards countries like China and India". However, the increase in tea export of August has not been found out so much dramatic as it was in July in which rise of 53 per cent has been recorded. The industry experts have made out their calculations and said that "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".

Exports in July, 2008 was calculated to be 18.16 million kg as against of 11.88 million kg of July, 2007. In terms of value, tea exports in the month of August have seen a surging phase where it was went up by 15 per cent to reach at 218.10 crore as against of 189.15 crore of the year ago period. India has been acknowledged as the country with the second largest tea production in throughout the world. The senior Tea Board official has candidly stated that the India's tea exports in the first 8 months of 2008 has increased up by 16 per cent due to the rising demand and shortfall in the production of important rival Kenya and the weakening position of rupee. Due to the less rainfall in Kenya, the total yield of tea has seen a diminishing trend with a fall down of 16 per cent in the first 8 months of 2008. Kenya is recognized as the largest exporter of CTC(crush, tear, curl) tea. The industrial experts have already done their estimation which states that the production of the East African grower will fall to reach at 335 million in 2008. Last year it was 369 million kg.

Many nations like Pakistan and Egypt are adjudged as the traditional Kenyan tea exporter but this year due to the good domestic output, India is busy in exporting tea to many such countries. Kenya is itself forced to complete its tea export requirements by purchasing it from India. The sudden rise has been recorded in the import of tea by the Egypt from India for supplementing its own 4.9mkg production, which is due to the prevalence of drought and political instability conditions of Kenya, which has brought down Kenyan production by 20 per cent. From January-August 2008, exports from north India rose by 17.16 per cent to reach at 64.58 million kg and the south India's tea production was increased by 15.41 per cent to touch the mark of 59.46 million kg. The production of tea in 2008 has been pegged to be 960-970 mkg as against of 955 mkg of 2007. Apart from the rising trend of the tea export and production, increasing prices of tea at different auctions in throughout the country are also spelling towards the profitability time for this sector. The total tea plantation area in India for the cultivation of tea is estimated to be around 521.500 hectares. Presently around 1,30,000 growers with 1.26 million workers are engage in the tea industry.