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Industry News
Govt Of India targets 250 m kg tea exports this fiscal year- The Economic Times

THE UNION commerce ministry has asked the tea industry to set a stiff target of 250 million kg of tea exports in the financial year 2001-02.

Apparently the ministry is encouraged by the possibility of the exports of around 220 million kg during the current financial year. Hence it had earlier asked the industry to peg exports at 265 million.

However, the industry felt that increasing the overseas sale by almost 70 million kg in a single year would be difficult, anything in excess of 220 million kg was achievable.

The logic behind the assumption that the exports from India will touch 220 million kg this year is the increasing level of orthodox tea production.

As of now, the orthodox production is up by about 26 million kg to 77 million kg in the first nine months of the calender year.

This time round last year, orthodox production had been a little over 51 million kg.

The industry is upbeat since whatever orthodox varieties are produced get exported. It also means India’s will be able to successfully push more teas into the West African and North American markets, where Sri Lanka continues to lead India as the largest exporter.

Last year India exported some 14 million kg to that region as against Lanka’s 21 million kg. But this fiscal, India is poised to export as much as 25 million kg, says, Gautam Bhalla of Warrens Tea, who is set to lead a delegation to Dubai, Jeddah and Cairo next week.

The effort is obviously to export more teas to those markets where tea drinking is quite popular.

Last year India exported about 190 million kg of tea. Given the chance that orthodox tea production would exceed last year’s level by about 35 million kg —and the entire additional production could be exported —reaching a target of 220 milion kg in the current year is a distinct possibility.

Subhash Mohanti

CALCUTTA 08.11.2000

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