Rupee Rise Impacting Tea Exports

Kochi: With the corrosion in the value of the dollar and the appreciation of the rupee, domestic tea exports have become uncompetitive in the world markets by as much as 10-15 per cent in price. While appreciation of the rupee to abnormal levels has had its impact on the trade in general, it is the merchant exporters who have been the worst affected. Export realisation of this section has significantly come down also due to higher interest rates and increase in ocean freight charges. While the tea sector has been improving as a result of Government measures, there has been a decline in tea exports due to the unprecedented appreciation in the value of the rupee.