Kochi: The tea prices in India are expected to remain at the current comparatively higher levels impacted by international scenario, where the prices are ruling high on reported crop loss in Kenya during the first quarter of 2008.
Prices of the CTC leaf and orthodox teas are at moderately higher levels in the world market. Kenyan tea was quoted at 237 cents/kg in January 2008 as against 178 cents/kg in January 2007. Similarly, Sri Lankan tea was sold at 305 cents/kg in January 2008 as against 209 cents/kg in 2007. The current prices show the tight supply position in the world market, trading sources told Business Line on Wednesday.
Tea output in Kenya during the first quarter is said to be lower by 35 per cent due to the ethnic conflict and drought conditions there. It is reflected on the world tea prices. “Impacted by the international scene, the prices of Indian CTC leaf and orthodox teas are expected to remain at the current levels,” they claimed. The prices of dust teas are, however, influenced by the domestic market, they said.
“We won’t say that the current prices are not remunerative, but we have to accept that there has been a jump from Rs 47 a kg last year to Rs 55.67 (all teas) in January 2008,” they claimed.
Non-traditional markets
They said non-traditional markets such as Turkey, Syria and Jordan were opening up for south Indian orthodox teas. Orders have started pouring in.
Demand, shipments
According to plantation industry sources, the recent extended summer showers in the southern States have not made any negative impact on the tea and instead it has been good to the crop.
“We can expect a good crop in April/May,” they said.
Sharp fall in demand from the CIS countries, Iraq and Pakistan in 2007 compared to the previous year has significantly pushed down exports from South India, which stood at 72.7 million kgs in 2007 from 119.9 million kgs in 2006. All India exports fell to 156.8 million kgs from 218.7 million kgs.
Shipments to CIS dropped to 43,950 tonnes from 49,110 tonnes in 2006, while that to Iraq fell to a mere 2,490 tonnes from 41,330 tonnes in 2006. Similarly, exports to Pakistan dropped to 5,150 tonnes from 14,730 tonnes in 2006.
However, the shipments of Indian teas to Arab Republic of Egypt (ARE) have shown a tangible increase in 2007 to 4,880 tonnes from 2,750 tonnes in 2006.
Prices of the CTC leaf and orthodox teas are at moderately higher levels in the world market. Kenyan tea was quoted at 237 cents/kg in January 2008 as against 178 cents/kg in January 2007. Similarly, Sri Lankan tea was sold at 305 cents/kg in January 2008 as against 209 cents/kg in 2007. The current prices show the tight supply position in the world market, trading sources told Business Line on Wednesday.
Tea output in Kenya during the first quarter is said to be lower by 35 per cent due to the ethnic conflict and drought conditions there. It is reflected on the world tea prices. “Impacted by the international scene, the prices of Indian CTC leaf and orthodox teas are expected to remain at the current levels,” they claimed. The prices of dust teas are, however, influenced by the domestic market, they said.
“We won’t say that the current prices are not remunerative, but we have to accept that there has been a jump from Rs 47 a kg last year to Rs 55.67 (all teas) in January 2008,” they claimed.
Non-traditional markets
They said non-traditional markets such as Turkey, Syria and Jordan were opening up for south Indian orthodox teas. Orders have started pouring in.
Demand, shipments
According to plantation industry sources, the recent extended summer showers in the southern States have not made any negative impact on the tea and instead it has been good to the crop.
“We can expect a good crop in April/May,” they said.
Sharp fall in demand from the CIS countries, Iraq and Pakistan in 2007 compared to the previous year has significantly pushed down exports from South India, which stood at 72.7 million kgs in 2007 from 119.9 million kgs in 2006. All India exports fell to 156.8 million kgs from 218.7 million kgs.
Shipments to CIS dropped to 43,950 tonnes from 49,110 tonnes in 2006, while that to Iraq fell to a mere 2,490 tonnes from 41,330 tonnes in 2006. Similarly, exports to Pakistan dropped to 5,150 tonnes from 14,730 tonnes in 2006.
However, the shipments of Indian teas to Arab Republic of Egypt (ARE) have shown a tangible increase in 2007 to 4,880 tonnes from 2,750 tonnes in 2006.
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