Despite a drop in volume shipped due to a significant surge in the price earned, India's tea export earnings in the first half (H1) of the current calendar year grew by 6.73 percent over H1 of 2020.
Kenya's tea production fell by around 10% in the first half of the year, reducing the supply of these teas in the global market. As a result, Kenyan tea importers looked for supplies from various other sources also including India.
This contributed to an increase in demand for Indian teas in the global market. It also increased the price of Indian teas to an average of 265.49 per kg, up from 218.82 per kg in the H1 of 2020, according to our analysis of the most recent data from the Tea Board. This meant that every kg fetched Rs.46.67, or 21.33 percent more than in H1 of 2020.
Covid impact
However, the price increase had an effect on the intake of some importers. Furthermore, exporters reported that the various stages of trade restrictions imposed by different countries as a result of the Covid-19 pandemic had a negative impact on orders.
As a result, the volume shipped fell 12.03 percent to 84.35 million kg (mkg) from 95.89 mkg in H1 2020.
Due to the higher price, overall earnings increased to 2,239.43 crore from 2,098.26 crore. This represented an increase of 141.17 crores, or 6.73 percent, to the country's exchequer. South India experienced a greater increase in earnings.
In the South, export prices increased by 19.15 percent to an average of 231.22 per kg, up from 194.05 in H1 of 2020. This reduced the volume shipped to 37.99 mkg from 41.03 mkg, a fall of 7.41%.
Nonetheless, helped by the higher price, overall earnings increased to 878.39 crore from 796.19 crore in H1 2020 – a 10.32% increase.
In the North, export prices increased by 23.69 percent to an average of 293.58 per kg, up from 237.34 in the H1of 2020.
This reduced the volume shipped from 54.86 mkg to 46.36 mkg, a 15.49% decrease. Because of the higher price, overall earnings increased by 4.53 percent to 1,361.04 crore from 1,302.07 crore in H1 of 2020.
