Exporters express worry over falling prices of tea in international markets

Source: The Hitavada      Date: 09 Jan 2018 09:53:29


 

Business Bureau,

Though the country has recorded growth in export of tea in 2017, corresponding growth in revenue generation during the period was not visible. It is mainly because tea prices have been reeling under pressure in the international markets.


As per the data released by the Tea Board, tea export grew by 6.7 per cent in the first ten months of 2017 as compared to the previous year. The country’s tea traders managed to export 1896.8 lakh kg of tea during January 2017 to October 2017 as compared to 1780 lakh kg recorded in the similar period in 2016. But the total turnover during the period was at Rs 3724.34 crore. The first ten months of 2016, fetched about Rs 3553.19 crore.


Anil Ahirkar, Executive Member of Federation of All India Tea Traders Association, said tea prices have been falling in the international market due to increase in supply of the commodity. “Russia and some of the other tea producing countries have been pouring in huge quantity of tea in the international markets which is ultimately diluting the prices. Tea prices were at Rs 199.62 per kg in 2016 but in December 2017 it plummeted to a level of Rs 196.35 per kg,” he said.


Ahirkar, who has recently attended the executive body meeting of the Federation of All India Tea Traders Association held at Guwahati, told The Hitavada on Monday that the issue of falling tea prices was prominently raised in the meeting.
“Most of our members have expressed concerned over it and the federation has decided to take up the matter with the policy makers. We have unanimously decided to the mount pressure on the policy makers to take steps to the support the prices,” he said. Ahirkar said, there is a need to promote tea in the domestic markets. “India is big consumers of tea but there is scope for increasing consumption,” he added.