Tea exports to grow due to high global demand: ICRA

Posted by Daily Shipping Times on 03-10-2017        Tweet

NEW DELHI: There is likely to be a growth in tea exports, mainly supported by high demand for Indian tea in the international market on the back of supply issue, which will also boost domestic price as well, ICRA said in a report.

"There will be an upward trajectory in overall Indian export realisations, supported by high demand for Indian tea in the international market, given the supply side issues. This, in turn, is expected to provide support to domestic price trends as well," ICRA said.

Meanwhile, ICRA said the global tea production is likely to record a decline in the calendar year 2017, primarily on the back of crop losses in Kenya, which accounts for around 16 percent of the total black tea production globally. Given Kenya's status as one of the world's largest exporters of black tea, production levels from the Country are likely to have a considerable impact on global demand-supply dynamics for the year, it said.

Further, the Sri Lankan crop levels, which contribute to around 10 per cent of global tea production, are also low.