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M.R. Subramani

CHENNAI, Dec. 30

TEA exports to Iraq have nearly trebled during the first 10 months of the calendar year, saving the blushes of the crisis-ridden tea industry.

The nearly 200 per cent rise in the exports have come at a time when shipments to the Russia and Commonwealth of Independent States (CIS) nations continued to tumble during January-October this year.

According to data available from industry sources, tea exports to Iraq increased to 36.33 million kg (mkg) during the review period against 12.66 mkg during the same period last year. Value-wise, the earnings were up at Rs 234.30 crore (Rs 85.43)

Rise in exports to Iraq was the only ray of hope this year when the country witnessed sharp drop in buying by Russia and export price realisation. It is the shipments to Iraq that has helped exports rise to 157.04 mkg against 153.51 mkg during the same period last year. Exports were up drastically as Indian tea companies bagged good orders to sell tea to Iraq under the UN-sponsored `Food for Oil' programme.

On December 26, Business Line reported that value of tea exports declined by Rs 7-10 per kg. During January-October, unit value realisation of tea exports dipped to Rs 139.03 per kg from Rs 151.32 last year.

Despite a memorandum of understanding signed with Russia to sell 100 million kg of tea, exports t Moscow were down to 36.95 mkg (58.52 mkg).

Exports value were down to Rs 229.91 crore (Rs 407.05 crore). Among other CIS countries, exports to Kazakistan were down to 8.06 mkg (9.48 mkg).

Shipments to Ukraine and Uzbekistan witnessed marginal rise of two lakh kg and and 60,000 kg, while to the rest of CIS, it was down 2.6 lakh kg.

The tea sector's plans to increase its exports by targeting Muslim-majority nations seems to be paying off with shipments rising to countries such as the UAE, Saudi Arabia, Turkey, Afghanistan and Pakistan.

Neighbouring Pakistan, which had assured to buy at least 10 mkg, increased its buying during the review period to 2.90 mkg (2.53 mkg). At the same time, exports to Iran slid to 3 lakh kg from 2.39 mkg during the same period last year.

Shipments to United Kingdom too picked up at 15.42 mkg (13.75 mkg) as also to Germany at 4.08 mkg (3.69 mkg) and the US at 5.66 mkg (5.22 mkg).

But shipments to the Netherlands dropped marginally, while to Poland it was down at 5.54 mkg (7.17 mkg).

Meanwhile, imports of tea have also witnessed a rise with shipments into the country rising to 17.76 mkg during January-October against 13.11 mkg during the same period last year.

Of this, imports from Vietnam were the highest at 9.23 mkg (3.53 mkg) followed by Indonesia (3.92 mkg versus 6.09 mkg) and Kenya (1.2 mkg versus 1.97 mkg). Imports from Lanka were 9.45 lakh kg against 7.18 lakh kg last year.

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