First slump in tea exports in June

The country’s tea industry suffered its first slump in exports in June, stirring fresh concerns.

Exports in volume in June 2011 totalled 25.5 m/kgs showing a decline of 2.4 m/kgs as against 27.9 m/kgs shipped in the corresponding month of last year. In value terms too revenue realised of Rs.12.6 billion was down Rs.1 billion compared to Rs.13.6 billion achieved in June 2010.

June data reaffirms tough times experienced in May when volume shipped grew by only 1.1 million kilos to 24.9 million kilos; whilst in value the increase was Rs. 700 million over the corresponding month of last year.

Cumulative exports for the first half totalled 149.6 m/kgs vis-à-vis 143.2 m/kgs compared to the corresponding period of 2010, showing a growth of 6.4 m/kgs. In value terms however total revenue realised of Rs.77.6 billion was the highest ever for the period January-June.

Forbes and Walker Tea Brokers said the increase of Rs. 6.3 billion was against Rs.71.3 billion realised during the first half of 2010 which incidentally was the previous highest.

Tea in packets, tea in bags and green tea have shown a growth YoY whilst tea in bulk has shown a decline YoY.

In the first five months of 2011, tea exports had increased by 8.8 million kilos and Rs. 7.3 billion value wise.

Forbes said CIS has retained its position as the No.1 importer followed by Iran and Syria. UAE, Turkey, Iraq and Japan are some of the other noteworthy importers.

Tea crop meanwhile in June totalled 28.7 m/kgs vis-à-vis 31.2 m/kgs of 2010 showing a decline of 2.46 m/kgs. High Grown production have shown a marginal gain for the month whilst Low Growns and Mediums have shown a decline.

Cumulative production for the period January-June 2011 of 170.4 m/kgs show a marginal gain of 1.04 m/kgs vis-à-vis 169.3 m/kgs of 2010. High Grown production of 44.5 m/kgs shows a gain of 2.2 when compared to 42.2 m/kgs of 2010. Low Growns too totalling 97.04 m/kgs show a gain of 0.1 m/kgs vis-à-vis 96.8 m/kgs of 2010. Mediums however of 27.1 m/kgs show a decline of 1.3 m/kgs as against 28.4 m/kgs of 2010.

CTC production for the month of June totalled 1.9 m/kgs showing a gain of 0.5 m/kgs or 36% vis-à-vis 1.4 of June 2010. Cumulative production too shows a noteworthy gain in 2011. January-June production totalled 12.1 m/kgs vis-à-vis 9.2 m/kgs of 2010, showing a growth of 31.6% or a gain of 2.93 m/kgs. All elevations have contributed by showing a growth YoY.