India gets to tap Iranian orthodox tea market ceded by Sri Lanka
(MENAFN- Trend News Agency)
Sri Lanka has seen a major dip in tea production and lost a
chunk of Iranian market for orthodox tea. Around 20% of India's
total tea exports go to Iran and the present decline in Sri Lankan
orthodox production may enable India to increase its market share
of orthodox tea in Iran.
India produces an average of 120 million kg of orthodox tea per
annum and Sri Lanka an average 300 million kg per annum,
predominantly orthodox. There has been a drop of above 15% tea
production in Sri Lanka and it has to be seen whether Indian
quantum is capable of filling in the gap of orthodox tea supplies
in the global market, PK Bhattacharya, president, Tea Association
of India, said.
Tea exports from India to Iran jumped twofold in January this
year to 2.7 million kg from 0.59 million kg during the
corresponding month last year. Price realisation this year was also
higher at `282.63 a kg against 271.34 a kg realised in January last
year, according to tea board data.
Sri Lanka exports over 95% of its total annual production
accounting for about 50% of the global trade of orthodox tea. Sri
Lankan orthodox tea in many cases fetches a higher price than Assam
orthodox and it is a much liked variety in Russia and CIS
countries. But there are long power cuts going on in Sri Lanka —
for about 14-15 hours a day and disruption in processing leads to
quality deterioration. Moreover, there were lesser rainfall for
which over all tea production in Sri Lanka has witnessed a 15-18%
drop, Bhattacharya said.
“In February 2022, their production of tea declined
significantly by 20%. On an average the monthly production is seen
at 20-23 mkg and in February it was seen lower at around 18.2 mkg,”
Sanjith Nair, secretary United Planters' Association of Southern
India (UPASI), the apex body of planters, said.Sri Lanka caters to
the world demand for orthodox tea to the extent of 43-47%. South
India being of similar elevation to Lanka has the scope for
replacing it in the international market. But a government support
was required to increase the production of orthodox tea in India,
which was earlier incentivised but at present removed, Nair
said.
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