Decline in tea production across India in 2020 has hit its quantum of exports, reveals data published by the Tea Board of India.
According to Tea Board numbers, the total export in 2019 was 252.15 million kilos, with the average price being Rs 227.55 per kilo. In 2020, the quantity of export declined by around 50 million kilos and came down to 207.58 million kilos. However, at Rs 248.55 in 2020, the average price per kilo increased from 2019.
The data also revealed that 1255.60 million kilos of tea were produced in the country in 2020 in comparison with 1390.08 million kilos in 2019. The dip has been attributed to the Covid-induced lockdown and inclement weather.
“Because of less production (the margin being around 134 million kilos), exports have dipped. There had been a rise in average price realisation from international markets, but eventually, the total earning remained less,” said Sumit Ghosh, secretary of the north Bengal branch of Tea Association of India.
Another tea planter in Siliguri agreed. “There may have been an increase in the average price but as a whole, the Indian tea industry has lost around Rs 600 crore in revenue because of the reduction in quantity. We hope the industry recuperates this year,” he said.
He pointed out that in 2019, the industry earned Rs 5,737.66 crore from exports, which reduced by Rs 578.20 crore in 2020 to Rs 5,159.46 crore.
The overseas markets, stakeholders said, however, continued to remain the same. Russia, the Commonwealth of Independent States (CIS) and the Middle East continue to remain principal buyers of Indian teas. There have been exports to a number of countries in Europe and the US.
Bijoygopal Chakraborty, president of the Confederation of Indian Small Tea Growers’ Associations (Cista), said initiatives should be taken to find out new international markets to merchandise Indian tea, particularly the CTC variety.
“Production is on the rise in the small tea sector but there hasn’t been any major change in the per capita domestic consumption,” he pointed out. He also stressed on more exports. “In 2020, prices have considerably surged due to less production but there is always a risk that the prices may decline if production rises. To ensure that prices remain steady, it is necessary to scout new international markets and augment the exports,” he said.
