Increasing Exports Production Cheer Sector

There is some joyfulness in the cuppa as the Indian tea industry is on a comeback mode with output and exports increasing despite competition from several countries such as Vietnam and Bangladesh. Data obtainable from the Tea Board show that exports increased by about 18 million kg (mkg) to 124.04 mkg till August this year, compared with the corresponding period last year. Overseas demand is on the increase and prices are firming up owing to good quality teas, besides shortage of teas in the world market. Pakistan, Egypt, Iran and Iraq and West Asian countries take up the permanent slot in the export list. On the output front, the country produced 123.1 mkg during August 2008 as against 116.3 mkg during the corresponding period last year.

For the January-August 2008 period, output has been pegged at 599.7 mkg tea against last year's 576.1 mkg. During August this year, south Indian production declined to 14.1 mkg (15.6 mkg), while north Indian production rose to 109 mkg (100.7 mkg). However, the period from January to August this year witnessed south Indian production increase to 155.1 mkg (140.7 mkg) while north Indian production was at 444.6 mkg (435.4 mkg).

Coonoor Tea Association Volumes Remain High

Volume offered for sale at the Coonoor Tea Trade Association (CTTA) auctions remains to be high with the catalogues of brokers adding to 13.07 lakh kg for Sale No: 42 to be conducted on Oct 16 and Oct 17. The balance includes teas remaining unsold in previous auctions. Of the 13.07 lakh kg on offer, 9.12 lakh kg belong to the leaf grades and 3.95 lakh kg belong to dust grades. The proportion of orthodox teas remains to be low in both the leaf and dust grades.

Rubber Sees Better Trend

Domestic rubber displayed a better trend on Oct 14. Sheet rubber RSS 4 increased to Rs 86 from Rs 81 a kg on Oct 13. Rubber prices have plumped to much lower levels. Spot prices were (Rs/kg): RSS-4: 86 (81); RSS-5: 82 (79); ungraded: 78 (74); ISNR 20: 81 (78) and latex 60 per cent: 70 (70).