Tea Exports Decline In Volume, Earnings

Coonoor: Tea exports in 2007 are dropping behind compared with last year in respect of both the volume and earnings. An analysis of the information available with the Tea Board shows that in the first two months of 2007, the earnings suffered despite a marked increase in the unit price fetched because of the volume falling short of last year. In January and February 2007, Indian tea brought an average price of Rs 95.97 a kg as much as Rs 13 a kg more than the same months of 2006. But, the higher price decreased the intake by the importers and the volume shipped dropped to 24.9 million kgs from 31.3 million kgs. The shipments dropped in respect of both the North and South Indian teas. The North Indian teas fetched an average price of Rs 116.67 a kg - as much as Rs 11 more than last year. Consequently, the overall earnings declined to Rs 135.9 crore from Rs 152 crore. The South Indian teas fetched an average price of Rs 77.77 a kg as much as Rs 15 more than last year.
The actual shipments surpassed this to reach 203.86 million kgs. But, with the prices fluctuating heavily and the domestic market paying more than the overseas trade, a target for the value gains relevance along with the volume target. Last year, for instance, despite the volume surpassing the target, the earnings stagnated at Rs 1,830.98 crore because the unit price had risen only marginally - Rs 2.17 a kg - over the previous year when the volume risen was also marginal - 4 million kgsIn the current calendar, Indian teas are gaining significantly in prices, but with no value target, focussed attention to augment earnings might be affected as importers shy away when prices rule high.