Indias tea exports are expected to increase to 203mn kilograms in this financial year as against 200mn kilograms a year ago. This is mainly due to a crop shortfall in rival Kenya.
As per Gagan Boriah, Director of Tea Development, exports are higher this financial year as the crop from Kenya has taken a hit due to bad weather. The worlds largest tea exporter Kenya has seen a shortfall in tea production due to a drought and political unrest.
Boriah further said that Kenya mainly produces the CTC (crush, tear, curl) variety of tea, so a shortfall in exports there can only be made up by Indian tea because India also mainly produces CTC. India faces competition from Sri Lanka and Indonesia in the orthodox tea market and in green teas from China. Kenya and other African countries vie for the CTC export market.
Moreover, resolution of trade complications relating to payments with Iraq, a major importer, has also helped exports, said Boriah. The Tea Board expects to achieve an export target of 205mn kilograms and a production target of 1,015mn kilograms by FY10, he added.
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