Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Online-views/  Rise in tea exports to 105.6 mn /kg in Jan-July ’08
BackBack

Rise in tea exports to 105.6 mn /kg in Jan-July ’08

Rise in tea exports to 105.6 mn /kg in Jan-July ’08

Premium

Coimbatore: Latest trends in tea export indicate that the quantity shipped from India has increased to 105.6 million kg in January-July 2008 from 88.9 million kg during the corresponding period.

Moreover, the value realisation and unit price were also higher by Rs1,86.1 crore and Rs1.42 per kg respectively, according to an overview on Tea by the United Planters Association of South India (UPASI).

One of the major threats that the Indian tea industry is exposed to since the removal of quantitative restriction in 2001, is the surge in import of low-priced tea, it said.

A cursory look at the quantum exported since 2001 suggests that quantum of imports has fluctuated, with the highest import volume registered being 30.8 million kg in 2004. In 2006, the quantum of import was estimated at 23.8 million kg and in 2007 it declined to 16 million kg.

The pattern of import since 2001 suggested that there existed a counter cyclical movement as far as import volume and unit value of imports was concerned.

Quantum of import was lower when the unit price of imports was higher, which clearly suggested that imports were resorted to take advantage of low value-low priced-teas and subsequently, re-export the same at a higher margin. Similarly a pro-cyclical movement was observed with a quantum of imports and quantum of exports, it said.

In conformity with earlier observation, the trend suggested that imports during Jan-May 2008 was higher by 34.7% and the unit value realisation was lower by 5.1 % compared to corresponding period last year, UPASI said.

Contrary to the increase in world tea production in 2007, world tea exports declined from 1585.8 million kg in 2006 to 1,565.2 million kg.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 17 Sep 2008, 01:26 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App