Rise in India’s tea import continues in current fiscal

The mounting craze witnessed in tea import in fiscal 2020-21 about the previous year continues with greater accent in the present fiscal.

An examination of the most current data readily available with the Tea Board reveals that India imported 2.03 million kg (mkg) in April in contrast to a mere .22 mkg in April 2020 which marked an boost of one.81 mkg or a whopping 822.73 for each cent.

A lot more tea was imported for the reason that of a marked reduction in the selling price. Every kg of imported tea price tag, on an average, ₹172.27 in opposition to ₹190.91 in April 2020.

In dollar phrases, the selling price of imported tea declined to $2.29 a kg from $2.fifty in April 2020.

Nevertheless, for the reason that of the sharp boost in volume, India compensated as considerably as ₹34.ninety seven crore to import tea in opposition to ₹4.twenty crore in April 2020. This marked a whopping boost of ₹30.77 crore or 736.62 for each cent in just the opening month in contrast to April 2020.

In dollar phrases, India’s outgo on tea import in April was $4.69 million in opposition to just $.fifty five million in April 2020. This posted an boost of $4.fourteen million or a large 752.73 for each cent.

If this craze ended up to continue on, India’s import volume and invoice this fiscal would be various periods better than final year, importers contend.

In 2020-21, India imported 27.27 mkg (2019-twenty: fifteen.fifty four mkg) at an average selling price of ₹166.ninety three a kg (₹149.fourteen) entailing an outgo of ₹455.21 crore (₹231.seventy six crore).

This was the all-time significant value expended on tea import but the present craze raises a possibility to exceed this in the current fiscal.

Re-exports

Importers contended that vast majority of the imported tea was re-exported immediately after value-addition by mixing with Indian teas.

In the article-WTO period, India is unable to halt import even with staying a net exporter. Traders are importing tea from lots of resources like some non-producing but investing ones.

The policy adopted by the Centre aims to check unbridled import is to levy deterring import obligations for teas from unique origins but producers have been insisting on much more deterrent responsibility tariff to prevent flooding of domestic market place with imported teas.