90% of the total domestic production of tea is used in domestic demand!

- Ubhi Bazar: Dilip Shah

- About 2020 lakh kg of tea exported from the country in 2020-21: Kenya's increased competition against India in the world market

The equations in the tea trade and industry in India have recently changed rapidly. Corona's infestation has led to a recent one-and-a-half-year lockdown at various stages, which has seen a recent increase in domestic demand for tea, while hotels, restaurants, public ceremonies etc. Market sources said that the demand for bulk consumption of tea from the region has also declined due to the closure. However, as the second wave of Corona has eased in the country recently, with signs of a third wave looming, there has been talk of a resurgence in the tea market and the industry. Meanwhile, the recent lockdown has seen a significant increase in domestic tea demand.

According to government-owned Tea Board sources, out of the total production of tea in India in the financial year 2020-21, about 5 to 20 per cent of domestic consumption in India is domestic tea. The total demand and consumption of domestic tea, which was around 111.50 crore kg in 2015-16, increased by about 2.5 to 3 per cent in the year 2020-21 to around 114.30 crore kg. Market analysts said that the recent rise in domestic consumption of tea is also due to the belief that tea consumption is used to protect against corona and boost immunity. In view of the fact that the total production of tea in India has been around 13.50 crore kg in the year 2020-21, the total consumption of tea in the country has increased to about 5 to 20 per cent of the total production, informed sources said. The rest is used in the form of tea export demand.

However, in some cases, some imported tea has been re-exported and in addition to last year's mango-forwarded quantity, tea has also been exported. According to the sources of the Tea Board, in the year 2020-21, about 4,050 lakh kg of tea has been exported from the country. According to the latest official export figures, tea exports from India rose by about 30-31 per cent in rupee terms in April. Exports of Indian tea to the world market increased by about 15 to 18 per cent during the period, from Rs 12 to Rs 15 per kg to Rs 21 to Rs 5 per kg. However, according to tea industry insiders, the mood is still worrying in terms of exports.

India's CTC tea prices have been high. In addition, the situation for tea exports is worrying given the delay in resolving the issue of payments in trade with Iran. These questions need to be addressed. According to Indian Tea Exporters Association sources, container freight charges have also gone up. Tea is also having an impact on tea exports. About 60% of the total tea exports from India are to CTC tea. Given this, CTC will have an impact on tea exports and will immediately have an impact on total tea exports. Kenya's low tea prices in the world market have also posed a new challenge to tea exports from India. In the year 2020, the price of CTC tea rose sharply.

However recently the market has come down. But experts are predicting that we will be able to compete in the export market only if prices continue to fall. Tea exports from India have declined by about 12-13 lakh kg in the ten-month period from April 2020 to January 2021, from about 303 lakh to 70 lakh lakh kg in the same period last year. Declining production of Orthodox tea, especially in the financial year 2020-21, due to declining production, lockdown situation in various countries of the world and high prices of CTC tea vs. Various factors are being held accountable. In the meantime, experts are surprised by the significant increase in overseas tea imports in the country. However, some sections of the market are claiming that most of these imported teas are being re-exported. Meanwhile, the country's recent import of tea in the three-month period from January to March has increased by about 15 to 150 per cent to 5 to 20 lakh kg. The plantation industry has expressed concern over the increased import of tea in the country. If imports increase, the domestic market and industry will be hit.