- Kenyan tea manufacturing has gone as high as 500 million kg
- In 2019, India had produced 1,390 million kg of teas
- Till November 2020, Indian plantations produced 1,181.69 million kg of teas in 2020
TAD NewsDesk, Kolkata: Even as Kenya has taken over the global black tea market, the Indian tea planters are suffering losses due to lack of demand for Indian tea. The country which is known for its tea leaves worldwide is now looking towards its home market in the hope of price recovery. Tea is expected to see a hike in prices and their costs have already risen up to 20% since three months.
Meanwhile, Kenyan tea manufacturing has increased as high as 500 million kg, a 16.2% jump from 430 million kg in the final 12 months. The increase in Kenyan tea’s produce has pulled down its costs to $1.8-2 per kg. The price is way lesser than the price at which India exports its teas. Moreover, the lockdown in UK amidst the pandemic has generated a phenomenal increase in the demand of Kenyan tea, making UK the largest importer.
Initially, tea manufacturing in India suffered during the lockdown and when the lockdown eased, it took about a month for the bushes to sprout new tea leaves and buds. In 2019, India had produced 1,390 million kg of teas and in 2020, the country had produced 1,181.69 million kg of teas till November. However in mid-December, gardens had to shut down operations and the shortfall until November was 2,018 million kg.
“The new season teas or first flush teas that will come into the market from March-end will open on a strong note as there are no teas in the pipeline. Tea prices will remain firm,” stated Azam Monem, director, McLeod Russel India.
“Domestic demand is strong. However, what will happen in the export markets is still not clear. Kenya is offloading tea at a much cheaper price which is hurting Indian tea producers in the world markets,” stated Monem, as the consumption of tea from dwelling soared up
Unfortunately, the delay in funds from Iran has also posed a challenge, especially since Iran is one of the greatest export markets for Indian teas.
Viren Shah, chairman of Federation of All India Tea Traders Association said,
“The present e-auction system is being replaced by a tender system. This will result in tea prices moving up”. Further, the Tea Board of India is all prepared to launch a brand new public sale system February onwards. Inspired from the Japanese public sale system, the mechanism has created confusion among the tea merchants.
Source – Economic Times