The Hindu : Efforts to catch up with Lankan tea

Online edition of India's National Newspaper
Saturday, Oct 04, 2003

Business

Business

Efforts to catch up with Lankan tea

By K. Venkiteswaran

KOCHI OCT. 3. A significant shift in Russia's buying pattern from CTC to orthodox tea could be successfully capitalised by Sri Lanka which is making its presence felt in the international market, observed Anil Kumar Prabhu, Chairman, Tea Trade Association of Cochin.

Speaking at the annual general meeting of the association here recently, Mr. Prabhu pointed out that tea exports from Sri Lanka during 2002 was 193.10 million kg against 179.80 million kg in 2001. But the value realisation was lower at Rs. 1633.48 crores against Rs.1682.11 crores. India's exports to the CIS have come down to 37 per cent from 50 per cent. The Tea Board had already initiated steps to augment exports.

During January-June this year, exports of tea from India stood at 57.15 million kg against 79.32 million kg in the same period in the previous year. The decline is evident both in terms of volume and value, 22.17 million kg and Rs. 141.14 crores respectively. Quality is said to be a key factor for the drop in exports to Russia. In general, export prospects are rather bleak as those markets with the great growth potential, in particular the Middle East, predominantly demand orthodox teas, while around 89 per cent of India's production consists of CTC tea.Furthermore, continuing complaints over the quality of delivered teas and spiralling labour and input costs have further eroded the country's position as a leading exporter.

Mr. Prabhu said the Tea Marketing Control Order 2003 had so many tough rules and even though the intentions were good and meant to help the ailing tea industry, was yet to deliver good results. He wanted tea to be promoted as a health drink rather than a refreshing and reviving drink.

On the production and price side, he said South Indian tea production 2002 was 178 million kg against 189.20 million kg in the previous year and North Indian 631.80 million kg (650.80 million kg). The all India production was 809.80 million kg in 2002 against 839.90 million kg in 2001. During the first six months of the current calendar year, all India production has shown an increase of 29.46 million kg over the corresponding period of the previous year.

Mr. Prabhu said it was more than three years in a row that the tea industry witnessed tumbling fortunes. Tea prices at all auction centres were under constant downward pressure in 2002 and have been on a steady downswing since 1998.

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