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Industry News

  - Kenya Earns 398 Million Dollars from Tea Exports...

  - CTC tea lapped up at higher rates across the country...

  - Ceylon Tea income targeted at US$770m...

  - Assam tea industry passing through a rough patch .....


Kenya Earns 398 Million Dollars from Tea Exports- Africa News Service

Tervil Okoko, PANA Correspondent

Nairobi, Kenya (PANA) (Panafrican News Agency, December 23, 2000) - Tea exports earned Kenya a staggering 31.3 billion shillings (398 million dollars) from sales of 192.3 million kg of the refreshment.

According to the Tea Board of Kenya (TBK), a total of 167.8 million kg of tea was traded at the popular port town of Mombasa auction in the January-November period.

This compares with 169.5 million kg sold during the same period last year. The KTB further notes that tea production in the month of November marginally surpassed last year's corresponding month production by 246,088 kilogrammes.

The production, the highest over the last five months, stood at over 24 million kg compared to 23.8 million kg produced during the same month last year. This represents a 1.03 percent increase.

The improved crop output is mainly attributed to the onset of short rains which were widespread in most parts of the tea growing areas, particularly the drought-hit east of Rift Valley regions.

The cumulative 11 months crop figure was 206.6 million kg compared to 221.6 million kg for the same period last year, says a TBK press release.

The shortfall of 15 million kg or 6.78 percent occurred during a year characterised by intermittent frost and drought in the tea growing regions.

Forecast by the TBK also indicates that tea production will gradually recover as conducive weather conditions continue to be experienced, as indicated by the month of November weather pattern.

TBK notes that tea-growing areas previously hit by frost and drought have experienced wet and warm weather conditions during the month of November.

Hailstorms caused considerable damage in parts of Kericho and, to a lesser extent, Nandi district.

"It is expected that (the month of) December will be a normal cropping month and if previous production levels are attained, the annual production level will be slightly above 230 million kg," KTB says.

In comparison with the same period last year, the KTB says the average tea prices have improved despite the shortfall in production.

Panafrican News Agency. Distributed by Allafrica Global Media (Allafrica.Com). (28/12/2000)

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CTC tea lapped up at higher rates across the country - The Economic Times

CALCUTTA

CTC tea continued to enjoy better demand at dearer rates for some varieties at the year's penultimate sale at Calcutta auction last week. The price levels of some teas were higher compared to those in the corresponding sale in 1999.

All CTC offerings from Assam appreciated in value, the smaller brokens substantially. Gujarat and Maharastra operated with strength for the goodliquoring tea with good support from the major blender.

Other internal markets were active with the buyers for the C I S preferring bolder brokens.

Good Assam brokens sold between Rs 86 and Rs 108 per kg against Rs 82 and Rs 90 in the corresponding sale last year. Good Dooars sold between Rs 56 and Rs 70 and Cachar brokens between Rs 46 and Rs 54 per kg. The offerings consisted of 55,002 chests.

Darjeeling tea saw good demand, the whole leaf grades being dearer with quality while improved brokens met with an irregularly dearer market, the remainder being firm.

Well-made fannings were firm to dearer. The major blender made good enquiry with some support from the Continental countries and other exporters for whole leaf varieties, the local traders being active for inproved brokens and fannings. The offerings amounted to 5,237 chests.

Nearly 45 per cent of Darjeeling tea sold at prices above Rs 125 per kg. In the orthodox tea sale there was good demand, clean and well-made whole leaf and brokens being firm to dearer and the remainder selling at around last levels. The stalkier varieties were easier and better fannings firms to dearer.

The major blender remained selective while the buyers for Western Asia and the CIS were active. The local traders operated for the cheaper brokens and fannings.

Good Assam whole leaf sold between Rs 125 and Rs 160 per kg against Rs 100 and Rs 135 in the corresponding sale last year. The offerings amounted to 15,974 chests.

Dust tea met with better demand, all varieties being irregularly dearer. The major blender and Tata Tea lent good support while Gujarat and Maharastra preferred the liquoring tea with good enquiry from other internal markets.

Good Assam dust sold between Rs 84 and Rs 102 and good Dooars between Rs 50 and Rs 60 per kg. The offerings amounted to 21,377 chests.

Meanwhile in Siliguri, strong demand prevailed for CTC tea on offer. Good and best brokens were absorbed at irregular rates while fannings and the secondaries followed a similar trend.

The major blender was selective and the internal packeteers remained active for the grainy sorts. Gujarat and Maharastra lent support to betterliquoring tea with North India remaining active.

Other intenal dealers made good enquiry. The buyers for the CIS and Poland remained quiet. The offerings amounted to 59,261 chests.

In Guwahati, there was strong demand for CTC tea at dearer rates. All clean and better medium Assam tended dearer. A small weight of Cachar tea also saw good demand at dearer levels.

The major blender and other packeteers operated for the medium and better medium tea with competition from north and western India. Cachar tea was well supported by the buyers from north India. The offerings amounted to 103,744 chests.

Clean and liquoring Assam dust tea was firm to dearer. The few brown sorts were irregular around last levels and tended dearer. The major blender and Tata Tea were active while W India picked up the liquoring lines. Other intenal markets made fair enquiry. The offerings amounted to 37,315 chests.

The Economic Times -India (27/12/2000)

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Ceylon Tea income targeted at US$770m- SUNDAY OBSERVER

by PANEETHA AMERESEKERE

This year will be a record one for tea exports both in quantity and rupee value, an Asia Siyaka report said. Quantity shipped should exceed 275 million kilos as against 269 kgs in 1999.

They forecast that the rupee earnings will exceed Rs 50 billion. "1998 earnings reached a record Rs 50.2 billion or US$ 780 million and declined to US$ 621 million last year. This year we estimate a figure of around US$ 770 million," it said.

The export of tea in value added form has declined steadily over the last five years. Exports in this form have increased marginally to 37% from 36% YOY, but is much lower than 46% achieved in 1996. The key issue is declining packeted tea shipments which are unlikely to reach the quantity of 94 million kg recorded that year. Tea in bulk constituted 65% of exports, packeted tea 27% and tea in bags 4%. There are no records of instant tea or green tea exports from Sri Lanka.

Russia/CIS continues as the prime destination for the sixth consecutive year, having taken up 21% of all exports.

The UAE which has developed into a major regional hub comes second with an absorption of around 15%.

Significant increases in exports have been achieved to Iran (25%), Egypt (30%) and Japan (45%). Shipments to Turkey have declined following a re-routing of some exports to the CIS.

(24/12/2000)

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Assam tea industry passing through a rough patch - The Hindustan Times
Utpal Parashar
(Guwahati, December 22)

THE 160-YEAR-OLD Assam tea industry is going through a rough patch these days. Low prices, cheap imports, stiff competition from other beverages and cheaper teas from other countries are sending alarming signals to the industry in Assam.

The Assam brand of tea, long favoured in the strong European and Japanese markets, is fast being substituted by other varieties.

The free trade agreement signed with other SAARC countries in 1998 have also seen Assam tea being edged out by the Sri Lankan brand in international markets.

“With the signing of the agreement and removal of other quantitative restrictions on import of tea to India that begins next year, the market is bound to become more competitive and cost of imported tea would further come down,” feels Mr R.S. Jhawar, Chairman, Indian Tea Association. He was speaking at a national tea vendors’ meet held at Guwahati.

To counter this, Mr Jhawar says the Central Government should raise import duties to 150 per cent as is permissible under the World Trade Organisation (WTO) agreement. At present tea can be imported from Sri Lanka at 7.5 per cent import duty only and from other countries at 35 per cent.

Due to cheap prices, competition from other beverages and cheap import duties it has become almost impossible for the Indian tea industry to reach annual production target of 1,000 million kilograms, Jhawar said.

At present, India imports 10 million kg of tea every year. The rate of consumption is increasing at 1.8 per cent only. “Better co-ordination between small tea growers and the big producers is necessary to make Assam tea fare well in the international market,” said the ITA chairman R.S. Jhawar.

The present year has seen a huge slump in sales at the Guwahati tea auction centre and the small tea growers owning small gardens are the worst hit. Only the best tea fetches a good price while the rest go at throwaway prices.

The situation has reached such a point that if bulk purchasers like the Tatas stop taking part in the auctions, the Guwahati auction centre, which was once the leading auction centre in Asia, faces closure. To get better prices, small tea growers of the state launched an agitation two months back. With big producers refusing to help them out the bulk purchasers are unwilling to increase prices and the agitation petered out.

The present year has been dubbed as one of the worst in the industry's history and many believe if the situation does not improve soon, the next year could become more harrowing.

THe HIndustan Times -India (23/12/2000)

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