Friday, October 23, 2020
Home Business Tea exporters fear dip in export volume in current year

Tea exporters fear dip in export volume in current year

Kolkata, Oct 16: Indian tea exporters fear that there will be a drop in export volume in the current year due to higher prices available in the domestic market, particularly of the CTC variety.

The exporters also complained about the lack of availability of shipping containers due to fall in imports which has also led to a steep rise in freight rates.

Chairman of Indian Tea Exporters Association (ITEA) Anshuman Kanoria said that exports last year was around 252 million kilograms as per Tea Board data.

“But this year we are fearing that the export volume will dip to 180 million to 185 million kilograms as offtake of orthodox tea by Iran had declined and the CTC variety is not being able to compete with Kenya and Africa due to high ruling domestic prices in India,” he said.

Crush, tear, curl (CTC) is a method of processing black tea in which the leaves are passed through a series of cylindrical rollers with hundreds of sharp teeth that crush, tear, and curl the tea into small, hard pellets.

Kanoria said that Iran is the largest importer of orthodox variety from India which was 55 million kilograms last year.

“But this volume of exports to Iran is going to be down due to some payment problems with that country. This year exports to Iran will be around 30 million to 35 million kilograms. We have apprised the commerce ministry of the problem”, Kanoria added.

He said that CTC exports have been badly hit due to high domestic prices. “There has been a good CTC crop in Kenya and Africa this year and so the prices have softened. These countries are making inroads with CTC tea in the export market as prices are low compared to India”, he said.

The other problem the tea exporters are facing are lack of shipping containers, he said.

Since imports have come down, availability of shipping containers have declined at the ports. “Due to this, freight charges have increased by a minimum of 50 per cent and this is eroding away the competitiveness of Indian tea in the export markets”, he added.

Kanoria said that as export markets are shrinking this year, it will be difficult to regain them when things become normal next year.

According to him, tea prices this year has hit a high due to crop shortfall caused by prolonged closure of the gardens due to the pandemic.

SourcePTI

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LATEST POST

Will reject central farm acts after SAD forms govt in Punjab: Sukhbir

Chandigarh, Oct 22 : SAD chief Sukhbir Singh Badal on Thursday said his party will not allow implementation of the Centre's farm laws when...

Adani to take over airport ops at Mangaluru by Oct 31, Lucknow by Nov 2, Ahmedabad by Nov 11: AAI

New Delhi, Oct 22 : The Adani group would be taking over the operations, management and development of the airports at Mangaluru, Lucknow and...

Rasika Dugal opens up about receiving ‘misogynistic’ comments for ‘Mirzapur’

Mumbai, Oct 22 : Actor Rasika Dugal on Thursday said every time she puts a post on social media about her character Beena Tripathi...

PM, Union ministers, CMs, political leaders greet Amit Shah on birthday

New Delhi, Oct 22 : Prime Minister Narendra Modi, Union ministers, chief ministers and leaders of different political parties on Thursday greeted Union Home...

MOST READ

CBI questions 4 accused arrested in Hathras case

New Delhi, Oct 20 : The CBI on Monday questioned all the four accused lodged in Aligarh prison for alleged involvement in the rape...

Taiwanese, Chinese staffers injured after clash in Fiji

Taipei, Oct 19: China and Taiwan traded accusations Monday over a violent altercation that broke out between Chinese diplomats and Taiwan government employees at...

Srikanth sails into Denmark Open quarters, Lakshya loses

Odense, Oct 16: Ace Indian shuttler Kidambi Srikanth stormed into the Denmark Open quarterfinals with win over Canada's Jason Anthony Ho-Shue but it was...

Pakistan unlikely to exit FATF’s grey list: Report

Islamabad, Oct 21: Pakistan might remain on the grey list of the Financial Action Task Force (FATF) as it has been unable to comply...