The Indian Tea Association (ITA) and United Planter's Association of South India (UPASI) have agreed to peg the export target for 2001 at 225 million Kg., a significant increase from the 205 million Kg. in 2000.

ITA representatives comprising of Warren Tea's Gautam Bhalla and Williamson Magor's Mohim Azam traveled to South India earlier this month to discuss the issue at the very on-set of the season and evolve a strategy to tackle the problem of declining Russian imports.

Both the bodies have identified Russia, Pakistan and WANA region as thrust areas where 70% of the exports will be pushed. The industry is hopeful of achieving the targets this year following ITA's initiative in the recent past including trade delegations to the WANA region. Russian traders are expected to visit India in April while a team from Pakistan is expected to come down in June.

The meeting between ITA and UPASI was strategically vital as the profile of exporters in the north is distinctly different from the south.

While the producer: merchant exporter ratio is nearly 50:50 in the north, producers comprise only 10% of exporters in the South. However, tea industry is more dependent on exports as overseas market accounted for nearly 108 million Kg. Of the 204 million Kg. Produced in 1999. in the North, only 98 million Kg. Of the 620 million Kg. produced was exported.

"We have urged UPASI officials to encourage the producers in South India to produce tea that are similar to Sri Lankan variety. South India needs to produce more orthodox tea and improve the quality parameters," Bhalla said. Against 60 million Kg. of Orthodox produced earlier, Nilgiris now produces only 30 million Kg. of suburban variety.

The meeting also discussed the implication of the WTO regime. While India's commitment to comply by its norms begin in April this year, Sri Lanka still has two years and Bangladesh one on its hands. With Sri Lanka having devalued its currency, which now stands at 96 rupees (Sri Lankan) to a dollar, it will mean increased competition for Indian tea in the export market.

(26/03/2001) The Times Of India

Current tea prices have firmed up in the country as a result of the initiative to curb production of cheap quality tea taken by the Consultative Committee of Planters' Association (CCPA) recently.

The strategy of quality-oriented production for strengthening the price situation has been yielding desired results and, coupled with this, good demand has helped planters get good prices in the auctions for all the major tea in the country, market sources said.

They said more than 80 per cent of the crush tear and curl (CTC) varieties was being sold above Rs 80 per kg in the recent Kolkata auctions.

Buyers from Commonwealth of Independent States (CIS) were quite active while the west Asia was selective and good Assam CTC brokens had fetched a price of upto Rs 108 per kg and good Assam CTC fannings upto Rs 90 per kg.

There has been a fair demand in the orthodox sale also with the well-made tippy varieties on offer selling strongly, and the good Assam orthodox brokens fetching Rs 100 per kg in the recent auctions, they added.

Market sources attribute this price stability to fall in December, 2000, output to 38,050 tonne, down from 56,200 tonne in December, 1999, due to the CCPA's call for halt in production of cheaper grade teas and to become more price than volume oriented.

December output, which was a nine-month low and less than half of the November 2000 production, was a turning point as it helped in better price realisations.

They added. Sources said, demand of Darjeeling tea was also fair, the selected best were holding their prices and more than 60 per cent volumes selling at above Rs 100 per kg, they said adding that around 30 per cent to 40 per cent of the variety was being sold at over Rs 150 per kg, they said.

Position for dust teas was good although irregular with a slightly lower trend following quality. Nevertheless the good Assam dust was rangebound at Rs 85-105 per kg and had, on strong buying, also fetched prices upto Rs 115 per kg.

Exportwise too, Indian tea was performing well with the major destinations being Russia, European Union and United Arab Emirates.

India was trying to find an outlet for two of its CTC grades, PF and PD which were currently in excess supply due to sluggish domestic demand.

Global imports of these two varieties to a major importer, the UK, was stagnant between 20000-25000 tonne per annum while India produced 40,000 tonne of these grades.

Sources said PF and PD grades accounted for around 40 per cent of the total CTCs produced in India and Pakistani consumers had a strong preference for them.

They said with Indian Tea Association having signed a memorandum of understanding with its Pakistani counterparts last month for exporting upto one lakh tonne tea, materialising of contracts would be a major boost for the industry.

India was also focusing on the West Asian markets like Iran and Iraq and Libya in Africa, they added.

(26/03/2001) Business Standard

COIMBTATOR, March 26 Asia Pulse - Tea prices witnessed a declining trend, as both leaf and dust varieties quoted lower by Rs one to Rs three in the Coimbatore tea auction on Friday, trade sources said.

Both CTC and orthodox leaf quoted lower by Rs one to Rs 1.50, while dust prices slid by Rs one to Rs three per kg from the previous level, sources said.

Despite good internal demand, best CTC leaf quoted between Rs 58 and Rs 60 and dust prices fluctuated between Rs 56 and Rs 6 per kg, they said.

Of about 700,000 kgs offered at the auction, leaf accounted for 471,000 kgs, sources added.

(PTI)

(26/03/2001) Asia Pulse