Tea exports jump 14% in June quarter

After setting a new record in financial year 2015-16 (FY16), India’s tea exports continued the growth momentum in the first quarter of FY17 (Q1FY17).

Data compiled by the Tea Board of India show India’s tea exports at 42.06 million kg during the quarter ended June, a 2.56 per cent rise from the corresponding period last year. In Value terms, however, shipment rose by an impressive 14 per cent to Rs 856.57 crore for Q1FY17 as compared to Rs 751.44 crore in the corresponding period last year. Average realisation from exports shot up around 11 per cent to Rs 203.65 a kg for the quarter from Rs 183.23 per kg a year ago. The increase in exports was mainly on account of high demand from Iran, Russia, Pakistan, Germany, Bangladesh, Poland and the UAE.

“India is realising the benefit of promotional efforts done in the past by the Tea Board,” said an official of a large tea firm.

To increase per capita consumption, the Tea Board initiated promotional efforts at an estimated cost of Rs 54 crore.

The board has allocated Rs 29 crore for domestic promotion and Rs 25 crore for Tea Boutiques abroad. With around 1,200 million kgs of output, India is the largest producer and consumer of black tea in the world, but not the largest per capita consumer.

India ranks 43rd globally in average per capita consumption at 0.73 kg, compared with 7.54 kgs in Turkey, 4.34 kgs in Morocco, 2.74 kgs in the United Kingdom and 1.01 kgs in Pakistan.

India exported 232.92 million kgs of tea, worth Rs 4493.10 crore, in FY16, breaking a 35-year-old record of 230 million kgs. Trade sources said India had exported around 231.74 million kgs of tea in 1980-81.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.