India tea exports recover as Kenya sets a minimum reserve price

Published 2021년 10월 18일

Tridge summary

The article highlights a potential revival in India's tea export sector, with a reduction in price disparity between Indian and Kenyan teas due to the Kenyan government's decision to set a minimum reserve price for tea. This move is expected to boost Indian tea exports to countries like West Asia, Russia, Kazakhstan, and the United States. India's tea exporters are targeting to surpass 200 million kg in 2021, benefiting from increased global demand and a price advantage over Kenyan tea. However, Indian tea faces strong competition from Kenya, which has trade deals with Egypt and Pakistan, and Sri Lanka, which has barter arrangements with Turkey and is negotiating preferential trade deals with China and Bangladesh. India does not have similar advantages but has reached an agreement with the ASEAN block for a basic tariff of 45 percent on tea, which may be reduced in the future.

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Original content

India's tea exports, which suffered greatly due to the availability of Kenyan tea at cheaper rates in global markets, may rebound now as the Kenyan government has set a minimum reserve price for tea to safeguard the interests of the country's tea growers. The Kenya Tea Development Agency has established a minimum reserve price of $2.43 (about Rs.183) per kg for processed tea at the Mombasa auction. As a result, the price disparity between Indian and Kenyan teas has reduced, and Indian producers have begun getting black tea export inquiries from West Asia, Russia, Kazakhstan, and the United States. This year, Indian tea faces strong competition from Kenyan tea, whose prices ranged between Rs.250-300 per kg, while Kenyan tea was priced at less than Rs.150 per kg. Exporters want to surpass the 200 million kg export milestone in 2021, riding on renewed worldwide demand in the next three months before the winter season brings an end to tea production. "As exports to Iran have declined, ...

Source: Krishi Jagran