Assam tea industry lost 20mn kg to the rains

New Delhi, Mar 5 (KNN) Although India ranked second in production and fourth in exports the Indian tea exports have declined in marginally in the year 2014.

This was confirmed by the Minister of State (Independent Charge) for Ministry of Commerce & Industry Nirmala Sitharaman on Wednesday.

She mentioned that the orthodox variety of Assam tea suffered a 20-million kg production loss due to the delayed rains last year.

In a written reply in the Rajya Sabha, the minister said lower demand in Iran, Russia and the US, lower prices from Africa at $2 per kg in the international market and lower demand from Bangladesh impacted export of the beverage.

India suffered to worthy competition from "Kenya which is a producer of crush, tear and curl (CTC) tea, and Sri Lanka, producer of Orthodox variety. Both nations have emerged as major exporters of the product in the international market," the minister added.

Unlike in India where domestic demand for tea is ever growing, Kenya and Sri Lanka have low demand and hence are dependent on exports.

Prices of African tea declined $1 per kg due to record production for two consecutive years in Kenya and as a result, its teas are being sold at $2 per kg in the international markets. (KNN/VV)