Rupee rise hurts tea exports
Tea exports may fail to meet the
210-million-kg target because of the rising
rupee and payment problems in Iraq.
"Bulk of our exports
are dollar denominated. It remains to be
seen how our exports fare this year. Though
our gross exports, which include re-exports,
increased last year, net exports remained
the same at 185 million kg," said Jairam
Ramesh, minister of state for commerce and
industry, while speaking at the AGM of the
Indian Tea Association.
Between January to June,
exports dropped by 15 million kg because
of the erratic weather. "We have to
wait and watch to see whether we will be
able to make up for this loss. Most of our
markets such as Pakistan, Egypt and Iran
are price-sensitive," said Basudeb
Banerjee, chairman of the Tea Board.
Tata Tea and its subsidiary
Tata Coffee are also planning to set up
a separate marketing cell in partnership
with international agencies to promote Indian
coffee and tea brands in Russia, Ramesh
said. India exports about 32 million kg
of tea to Russia.
"Tata Coffee is the
largest exporter of coffee in Russia and
most of our exports are business-to-business
and are not brand-based," said Percy
Siganporia, managing director of Tata Tea.
The government is likely
to lift its restriction on foreign investment
In the last fiscal, Indian
exports to Bangladesh dipped slightly to
$1.7 billion and China took over as the