Mixed fortunes for tea

Friday, 24 March 2017 00:59 - - {{hitsCtrl.values.hits}}

Exports drop by 1.2 m kg but prices increase by Rs. 2.6b
Production drops by 4.5 m kg to 18.4 m kg, lowest since 2009

Tea continued to have mixed fortunes in February with exports dropping by 1.2 m kg year-on-year but prices increased by Rs. 2.6 billion, giving moderate relief despite production hitting its lowest point since 2009, brokers said yesterday.

Tea exports for February 2017 totalled 22.4 m kg vis-à-vis 23.6 m kg of February 2016, showing a decrease of 1.2 m kg. All categories i.e. bulk/packeted tea and teabags have shown a decrease YOY, noted Forbes and Walker in its weekly report. 01-01

“It is however relevant to note that the total revenue realised for February 2017 of Rs. 17.1 billion has shown a significant gain of Rs. 2.6 billion vis-à-vis Rs. 14.5 billion of February 2016. Consequently, the unit FOB value too of Rs. 765.36 has shown a gain of Rs.149.68 vis-à-vis Rs. 615.68 of February 2016,” it said.

On a cumulative basis January-February exports totalled 42.6 m kg, showing a decrease of 5.1 m kg vis-vis 47.7 m kg of the corresponding period of 2016. Here again bulk/packeted and teabags have shown a decrease compared to the corresponding period of 2016. Meanwhile, total revenue realised of Rs. 32.4 billion has shown a gain of Rs. 3.6 billion vis-à-vis Rs. 28.8 billion of January-February 2016 while the cumulative FOB value too of Rs. 760.75 has shown a substantial gain of Rs. 156.48 when compared to the Rs. 604.27 realised during January-February 2016.

Russia has retained the top position as the largest importer for the period January-February 2017, followed by Turkey and Iran while Iraq has retained fourth position. Other noteworthy importers are Libya and the U.A.E. Meanwhile, Kuwait has shown a fairly significant decrease in imports for the period under review.

Tea production for February 2017 totalled 18.4 m kg vis-à-vis 22.9 m kg of February 2016, showing a decrease of 4.5 m kg, thus recording the lowest production for February since 2009 when only 12.8 m kg was produced. High Growns totalling 3.9 m kg for February 2017 have shown a decrease of 1.4 m kg vis-à-vis 5.3 m kg of February 2016.

This too is the lowest production since 2007 February when only 3.6 m kg was recorded. Meanwhile, Mediums totalling 2.6 m kg too have shown a decrease of 0.7 m kg vis-à-vis 3.3 m kg of February 2016. Here again this is the lowest since 2009 when only 2.2 m kg were recorded. Similarly Low Growns totalling 11.7 m kg for February 2017 have shown a decrease of 2.3 m kg vis-à-vis 14 m kg of February 2016, recording the lowest since 2009 when only 6. 6 m kg were produced.

On a Cumulative basis January-February 2017 production totalled 39.9 m kg, showing a decrease of 8.2 m kg vis-à-vis 48.2 m kg of January-February 2016. Here again High/Medium Low Growns have shown a decrease compared to the corresponding period of 2016. (As detailed in page No.12).

CTC production for February 2017 of 1.1 m kg showed a decrease of 0.35 m kg vis-à-vis 1.5 m kg in February 2016. All elevations show a decrease YOY for February.

When analysing the cumulative CTC production for January-February 2017 of 2.5 m kg, show a decrease of 0.4 m kg vis-à-vis 2.9 m kg of January-February 2016. High and Medium Growns have shown a decrease YOY whilst Low Growns have remained static.

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