Tea exports to Pakistan up 47% at Rs.185 cr in FY16

The Dollar Business Bureau

Tea exports from India to Pakistan have increased 47.5% to reach Rs.184.56 crore in FY 2016 against Rs.125.12 crore in the last financial year. The total exports of tea from the country has surged 10% at Rs.4,200.46 crore this fiscal when compared to Rs.3,823.64 crore in FY 2015.

In terms of volumes, the tea exports from the country to Pakistan rose to 18.94 million kg in FY 2016 while it was 15.20 million kg in the previous fiscal, as per the data released by Tea Boards. The export price for Pakistan has been increased to Rs 97.44 per kg in FY 2016 when compared to Rs 82.32 in the last fiscal year.

India is the second largest tea producer in the world and also one among the biggest consumers. It exports CTC (crush- tear-curl) grade tea to Egypt, the UK, and other countries. It also dispatches some traditional varieties of tea to countries like Iraq and Iran.

There is an upsurge in the tea exports to the main importing countries like the Commonwealth of Independent States (CIS) countries such as the UK, Germany, Poland, the UAE, Bangladesh and Sri Lanka.

Due to unfavourable weather conditions, tea production was less this fiscal year. Moreover, wage issues with the workers also affected the tea producers in the country.

Other major issues of tea industry include migration of workforce to other industries. The tea plucking season commences from July and lasts till October in India.