Tea exports from India, the world’s largest producer, fell 13% in the first half of the year from a year earlier after the rupee climbed to a nine-year high and supplies from Kenya rose.
Exports fell to 75.7 million kg in the six months to 30 June from 87.5 million kg a year ago, said Sujit Patra, joint secretary of the Indian Tea Association.
Production in Kenya, the biggest black-tea exporter, rose 21% to 32 million kg in May because of good weather, the Tea Board of Kenya had said on 22 June.
India’s rupee rose to a nine-year high last month against the dollar, prompting exporters to sell more domestically, Patra said.
“Exports to dollar-denominated markets were lower because of the rupee’s gains against the dollar,” Patra said in a phone interview from Kolkata. “Kenyan supplies rebounded after last year’s drought and that increased competition,” he added.
India’s tea exports in June were a third less from a year ago at 13.4 million kg, according to the association. Kenya’s exports in May rose by a fifth to 33 million kg, according to the Tea Board of Kenya.
Output in the first half of this year was little changed at 334.7 million kg compared with 333.3 million kg a year earlier. June’s output was 108 million kg, up from 107 million kg during the same period a year earlier. BLOOMBERG