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Kenyan strife improves prospects for Indian tea exports

KOLKATA: The political turmoil in Kenya is set to improve the prospects for Indian tea exports in the current year. A decline in the Kenyan tea crop due to drought coupled with shortage of trained hands at the tea plantations, consequent to the unrest, is set to lead to a crop shortfall.

Sources in the Tea Board told The Hindu that India was now trying to fill the gap with its production of CTC tea in markets such as Pakistan where Kenya had a large share. Industry sources said that India’s export prospects seemed to be further bolstered by the fact that Bangladesh, which is trying to emerge as significant player in the world CTC (crush, tear and curl) tea market, does not have any surplus.

Since the beginning of 2007, tea exports from India have started declining in many countries. According to statistics given by the industry regulatory body, the Tea Board, exports were 152 million kg which was 62 million kg lower than in the previous year. The main reasons behind these were a 15 per cent appreciation of the rupee in 12 months, a bumper crop in Kenya and a substantial downfall in shipment to Iraq due to payments problem.

On India’s Pakistan hopes, industry sources said that having made a major inroad into the 170-million kg Pakistan tea market, following the Kenyan drought in 2006, the Indian tea industry was upbeat having displaced Bangladesh to become the second largest exporter and a projection of 20 million kg looked achievable by 2008. That optimism stemmed from the over 60 per cent jump achieved in 2006 when exports touched 15 million kg. In reality, India exported a mere five million kg to its neighbour in 2007. It now hopes to recoup some of the lost ground not only in Pakistan but also in the world market where India lost its supremacy long ago and was in the fourth position in 2006.

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