Recently, the exports of tea from India registered a decline of around 14.4% in the first seven months (January-July) of 2021 as compared to the same period in 2020.
Context
Recently, the exports of tea from India registered a decline of around 14.4% in the first seven months (January-July) of 2021 as compared to the same period in 2020.
Key-Points
- Total exports between January and July 2021 were 100.78 million kgs compared to 117.56 million kgs in the same period of 2020.
- The CIS (Commonwealth of Independent States) block remains the largest importer of tea at 24.14 million kgs, down from 30.53 million kgs in the same period.
- The only exception is the USA and the UAE where exports are registered for an increase in the 2021 period.
Reasons of Decline
- US Sanctions on Iran: Exports to Iran, once a major buyer of Indian tea, were down due to sanctions by the U.S.
- Unavailability of Containers: Another major reason is the unavailability of expensive shipping containers during the Covid times.
- Cheap Specification Availability: Due to the availability of less expensive varieties in global markets and between trade restrictions in countries that have been potent importers.
- Low Prices of other Tea
- Indian exports have suffered over the past two to three years due to very low prices for Kenyan and Sri Lankan tea.
- Kenyan tea auction price average is much less than the Indian auction average.
- Domestic Consumption: About 80 percent of its Indian production is sold for domestic use, according to the 2018 'Top Summary for Home Tea Research' published by the Tea Board.
- Shutdown of Shipping to Pakistan: Exports to Pakistan, India's largest tea market, have stalled for the past three years following tensions between the two countries.
- Pandemic-Induced Economy: The coronavirus-led economy has led to the low productivity of a few commodities and the inequalities of the Indian economy. This has contributed to the sale of Indian tea and other important reasons.
About tea
- About: Tea is a beverage made from the Camellia sinensis plant. It is the most widely used beverage in the world, after water.
- Origin: Tea is believed to have originated in northeastern India, northern Myanmar, and southwestern China, but the exact location where the plant began to grow is unknown. There is evidence that tea was consumed in China 5,000 years ago.
- Growing Conditions:
- Climate: Tea is a hot and humid plant and thrives in tropical and subtropical climates.
- Temperature: The optimum temperature for growth is 20 ° -30 ° C and temperatures above 35 ° C and below 10 ° C are dangerous for the tree.
- Rainfall: Requires an annual rainfall of 150-300 cm which should be well distributed throughout the year.
- Soil: Soils that are best suited for tea cultivation are slightly acidic (calcium-free) soils with holes in the soil that allow for free drainage.
- India and Tea Production
- The world's largest tea buyer.
- The world's second-largest tea producer.
- China is the largest producer.
- The world's fourth-largest tea retailer.
- International Tea Day: It is celebrated on 21 May each year after its inauguration by the United Nations in December 2019.
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