India’s tea export earnings have increased by 6.73 per cent in the first half (H1) of the current calendar year over H1 of 2020 on the back of a significant surge in the prices earned, despite a fall in the volumes shipped
Further, Kenya’s tea production fell by around 10 per cent in the first half of the year, reducing the supply of these teas in the global market. As a result, importers looked for supplies from various other sources including India. This has contributed to an increase in demand for Indian teas in the global market.
At the same time, it has pushed up the price for the Indian teas to an average of Rs 265.49 a kg from Rs 218.82 a kg in H1 of 2020, reveals an analysis of the latest Tea Board data. In other words, every kg of tea has fetched Rs 46.67 or 21.33 per cent more than in H1 of 2020.
Due to the pandemic and the various stages of trade restrictions in different countries tea import orders were hit. Consequently, the volume shipped from India dropped to 84.35 million kg (mkg) from 95.89 mkg in H1 of 2020 – a decline of 12.03 per cent.
However, higher realization due to higher price led the overall earnings to rise to Rs 2,239.43 crore from Rs2,098.26 crore during the year.
South India posted a higher gain in earnings as the export prices rose by 19.15 per cent. This is despite the reduction in the volume shipped which fell to 37.99 mkg from 41.03 mkg – a fall of 7.41 per cent.
In the North, the export prices rose to an average of Rs 293.58 a kg from Rs237.34 in H1 of 2020 – an increase of 23.69 per cent. In contrast, the volume shipped fell to 46.36 mkg from 54.86 mkg – a fall of 15.49 per cent. Still, because of the higher price, the overall earnings rose to Rs1,361.04 crore from Rs1,302.07 crore in H1 of 2020 – a gain of 4.53 per cent.