Kolkata: With Kenya and Sri Lanka, the major exporters of bulk tea witnessing erratic cropping patterns thereby leading to supply side issues, the demand for Indian teas has increased in the global markets, according to an ICRABSE -0.57 % report.
Export volumes during first four months of CY2017 have increased by around 5.7%; the realizations also witnessed an increase, albeit modestly, at 5.6%. According to ICRA, the continuation of such a favourable export scenario going forward, would have a positive impact on domestic prices as well. However, continuing cost pressures, primarily attributable to the increase in wage rates, would keep margins under check.
In the first four months of CY2017 under consideration, black tea production in the major tea-growing countries of India, Kenya and Sri Lanka witnessed a de-growth of 11%, primarily due to significant drop in Kenyan production. This decline in crop availability has led to firming up of prices at most auction centres globally. The auction prices (in US$ terms) in Sri Lanka and Kenya have increased by 44% and 24% respectively. Prices of Sri Lankan teas, which are mostly the orthodox variety, have surged to touch US$ 4.08/kg during 4m CY2017, as against US$ 2.84/kg in the corresponding previous months; while Kenyan tea prices, which are entirely of the CTC variety, touched US$ 2.98/kg, vis-a-vis US$ 2.41/kg. Read More.
Export volumes during first four months of CY2017 have increased by around 5.7%; the realizations also witnessed an increase, albeit modestly, at 5.6%. According to ICRA, the continuation of such a favourable export scenario going forward, would have a positive impact on domestic prices as well. However, continuing cost pressures, primarily attributable to the increase in wage rates, would keep margins under check.
In the first four months of CY2017 under consideration, black tea production in the major tea-growing countries of India, Kenya and Sri Lanka witnessed a de-growth of 11%, primarily due to significant drop in Kenyan production. This decline in crop availability has led to firming up of prices at most auction centres globally. The auction prices (in US$ terms) in Sri Lanka and Kenya have increased by 44% and 24% respectively. Prices of Sri Lankan teas, which are mostly the orthodox variety, have surged to touch US$ 4.08/kg during 4m CY2017, as against US$ 2.84/kg in the corresponding previous months; while Kenyan tea prices, which are entirely of the CTC variety, touched US$ 2.98/kg, vis-a-vis US$ 2.41/kg. Read More.