Chennai/Kolkata, APRIL 24:
India’s black tea exports have begun scaling the Great Wall. Shipments of black tea to China have increased 10-fold since the 2008-09 fiscal.
“Black tea exports to China have recorded the highest rate of growth. There is a great potential for it,” said Ms Roshni Sen, Deputy Chairperson of the Tea Board.
According to Tea Board data, shipments of black tea increased to 1.27 million kg (mkg) during 2010-11 from 0.10 mkg during 2008-09.
According to trade sources, exports during the last fiscal crossed 2 mkg.
“China is basically a green tea consumer. But what I have also seen is black tea is getting imported for the ready-to-drink or instant tea for the younger population,” said Mr Aditya Khaitan, Managing Director of McLeod Russell.
“It is mainly tea from North India that is being exported to China. The younger generation there needs a stronger cup of tea,” said Mr N. Sriram, Director of Coonoor-based Contemporary Tea Brokers.
Though China is the largest producer of tea, production of black tea there is declining. India, on the other hand, is the largest producer of black tea in the world. Production in 2011 is estimated at a record 988.33 million kg. Exports are hovering around 200 mkg during the last couple of years.
Pakistan and China are seen as sources that can help perk up black tea shipments.
The rise in Chinese black tea consumption is likely to put pressure on prices, according to Mr Khaitan.
source: http://www.TheHinduBusinessLine.com / Home> Markets> Commodities / by Hindu Bureau / April 24th, 2012