Signs of growth in global tea production: Exports from the country to Iran are likely to increase

- Ubhi Bazar ઃ Dilip Shah

- Indications to increase the share of products made by small tea growers in the total production of domestic tea

The country has recently seen a reversal of trends in the tea market and industry. Recently, during the Corona period, the country saw a significant increase in the demand for tea in household consumption. In front of the hotel, restaurant, various ceremonies vs. Demand for this specialty has grown significantly as a result of recent corporate scandals. However, now that the cases of Corona have started declining and reopening has started, there are indications that the demand for bulk consumption in the tea market and inquiries have also resumed. Meanwhile, the country's foreign minister had recently visited Iran and tea exporters are now hoping that this will boost tea exports from India to Iran. According to sources, tea exports from the country to Iran are likely to increase to about 3 million kg this year. However, the United States has imposed various global trade sanctions on Iran. However, tea exports from India to Iran are now on the rise. However, given that rupee-real money transactions have come to a standstill, global experts are counting on remittances from Iran to the United Arab Emirates, the UAE and Turkey. Some more optimistic sections are now pointing to the possibility of increasing tea exports to Iran to 200 lakh kg. Orthodox tea exports to Iran alone are estimated at 4 million kg.

Meanwhile, on the one hand, there is talk of increasing tea exports, while the country has also imported about 3 to 4 lakh kg of tea between January and May this year. However, the country's imports of tea during this period last year were around 12-13 lakh kg, which is a decline this year. The fact that tea exporters were heavily dependent on Russia in the 1970s has created a situation for Iran in recent years. Meanwhile, tea exports from the country stood at 2,050 lakh kg last year, but there is controversy over whether this figure will be achieved this year. In terms of CTC tea in the world market, Kenyan tea prices have been lower than Indian tea and India has increased Kenya's competition on this issue. Meanwhile, Nadaria fares for tea exports have also risen sharply recently. Shipping cost has increased. Besides, tea exporters are also facing shortage of containers for export. In addition, delays in getting GST refunds have also affected the liquidity of money.

Meanwhile, the government has become serious about increasing the production of various oilseeds and pulses in the country, as well as efforts to increase tea production have recently begun. The T-Act Tea Act was enacted in the country in the 19th century and various amendments to this Act have been made from time to time. In the T-Act, the government has recently decided to implement various sections of sections 18 to 19 and section 8 to 20. The sections of sections 13 to 14 of the Act, which contained government restrictions on increasing tea cultivation, required government approval, which is now being removed. The government had retained the power to dismantle such plants under sections 7 and 80 of the Act if tea cultivation was increased without government approval. Given that these clauses are also being removed now, there is a possibility of increasing the area of ​​tea plantations in the country. The country has seen a significant increase in tea production through Small Tea Growers STG in recent years. About 20 to 21 per cent of the total tea production in the country is produced by such small tea growers. Such growers also have lower production costs. In the organized tea industry, about 50% of the total production cost of tea is in the form of labor. Thus the competition of small tea growers against organized tea growers has now increased significantly. Meanwhile, global tea production is projected to grow by about 15 to 18 per cent in the current calendar year 2021 amid calculations of increased tea production in the country. In the current year, the total global tea production has so far increased to around 3 to 4 lakh kg. The total global production during this period last year was around 3 to 4 lakh kg. In India, domestic tea production has increased by about 3 to 4 lakh kg during this period to around 3 to 4 lakh kg.