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However even nearly as good high quality Indian tea costs have soared 40-50% over the previous 12 months, exporters are witnessing extra enquiries from newer markets akin to Turkey, Saudi Arabia and Iraq.
“Patrons from the EU and Japan will not be eager to pay increased costs. So, the offtake is much less. Furthermore, the British pound and Japanese yen have weakened towards the rupee, which too is impacting Indian tea exports to the UK and Japan,” Anshuman Kanoria, chairman of the Indian Tea Exporters Affiliation, informed ET.
In keeping with the Tea Board, exports to Japan fell 10.71% year-on-year within the first 5 months of 2022, to Germany 10.33% and to the UK 2.46%.
The image for the approaching months shall be clearer as soon as export figures for the June-August interval come out, stated Kanoria.
Nevertheless, patrons in newer markets like Iran have proven curiosity in Indian orthodox tea – loose-leaf tea, which is produced utilizing conventional strategies that contain plucking, withering, rolling, oxidation or fermentation and drying.
“Orthodox tea market is at an all-time excessive. The market is booming in Iran for Indian orthodox teas. Orthodox tea manufacturing too must be at an all-time excessive. Iran and the UAE collectively will exceed 54 million kg of tea exports from India,” stated Mohit Agarwal, director, Asian Tea & Exports. “The Assam authorities is giving full help and it has elevated orthodox subsidies to ₹10 per kg.”
India produces 100-120 million kg of orthodox tea yearly.
Exporters are hopeful that shipments will improve to 225 million kg in 2022, as towards 195 million kg in 2021.
