TEA - FROM RUSSIA WITH(OUT) LOVE
Article Abstract:
India is the largest producer of tea and accounts for 30 percent of the two billion kilograms (kg) of tea produced globally. During 1997, Russia imported 92 million kg of tea from India valued at Rs8.5 billion which accounted for 45 percent of the 203 million kg of tea exported by India valued at Rs17.3 billion. However, the current Russian crisis is likely to affect Indian tea industry which has witnessed a five percent increase in production for the period between January 1998 and September 1998. Its production during 1997 was 810 million kg. The tea industry is also facing increased competition from Kenya and Sri Lanka. Numerous Sri Lankan planters are planning to export bulk of their tea produce to India after the Indian prime minister announced that SAARC countries could freely trade in 2,000 commodities including tea. The government has slapped an eight percent excise duty on packaged and branded tea which will lead to an increase in prices. Value added tea exports account for 49 percent of total exports of Rs18 billion and the fresh levy is likely to result in a total loss of around 10 percent in the export market for 1998. Tea prices in India have been on the decline since January 1998. The average price of South India tea for January to September 1998 is between Rs50 to Rs60 per kg (Rs75 to Rs80 per kg for January to September 1997). North Indian tea prices have also dropped by around Rs8 to Rs10 per kg. As per the production target for the Ninth Five Year plan, India will produce 1,000 million kg by 2002 AD. The tea board expects to reach this by increasing the total area under cultivation and by promoting research and development activities. India's per capita tea consumption is 653 grams and this is slated to grow. This, coupled with the natural growth of population is expected to lead to an annual expansion of tea consumption at the rate of over three percent per annum. It has been projected that domestic demand in 2001 AD will be between 753-765 million kg. (tsm)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
KERALA EXPAT DEPOSITS NEAR Rs13,000-CRORE MARK
Article Abstract:
The deposits from non resident Indians from Kerala has crossed Rs13,000 crore mark. The expatriates deposit was Rs12,876 crore at the end of June 1998 which is 46 percent of the total deposits of commercial banks at Rs28,001 crore. (rk)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: AMP SETS UP FIBRE OPTIC UNIT IN B'LORE. SABAVALA EXITS TATA SONS, SETS TONE FOR REVAMP
- Abstracts: JR FABRICATOR - ALL GAS, LITTLE SUBSTANCE VOLTAS MAY GET Rs1,300-CR ORDER
- Abstracts: ANAGRAM FINANCE DECIDES TO PREPAY OUTSTANDING FDs SIX SECTORS ADD Rs13,000 CRORE TO IMPORT BILL. SUGAR, SUGAR EVERYWHERE
- Abstracts: THE HIGH COST OF WRONG REFORM SBM TO OPEN 26 NEW BRANCHES
- Abstracts: EIH ASSOCIATED HOTELS: GOOD PROSPECTS CROCODILE PLANS Rs18-CRORE MARKETING REVAMP