Having witnessed over seven per cent drop in 2012, tea exports are expected to grow by over nine per cent in 2013. According to M.G.V.K. Bhanu, Chairman of Tea Board, the growth in exports would be aided by a strong demand for orthodox tea in CIS countries and Iran. India is likely to export over 220 million kg (mkg) of tea in 2013, compared with 201.08 mkg in 2012. Tea exports from India stood at 215.42 mkg in 2011. ORTHODOX VARIETY “There is likely to be a good demand for orthodox tea from the CIS countries and Iran this year,” Bhanu told newspersons on the sidelines of a seminar on Tea and Health here on Thursday. Export of India’s orthodox tea to Iran witnessed a dip in 2012 in the wake of sanctions imposed by the US and European Union on Iran. India’s tea exports to Iran stood at around 13 mkg in 2012. With the Reserve Bank of India granting permission to Central Bank of Iran to open rupee accounts with State-run UCO Bank, Iranian importers could establish letters of credit in India easing transactions. “With the situation in Iran improving, tea exports are likely to increase to 20 million kg this year,” he added. PRICES The lower demand from Iran led to some producers cutting down the production of orthodox tea, which led to firming up of prices. Average price of orthodox tea, which was close to Rs 109 a kg in 2011, firmed up to Rs 156 in 2012. In 2013, the prices of orthodox tea are likely to remain firm on the back of a steady demand from CIS countries and Iran, he pointed out. India should concentrate on high value tea for exports so as to achieve better unit realisation, he said. PRODUCTION India’s tea production is expected to be marginally up at 1,115 mkg in 2013 (Jan-Dec). The country produced nearly 1,111.76 mkg in 2012 – 3.24 mkg lower than in 2011. FIRST FLUSH The decline in production was primarily on the back of inconsistent weather in the Assam Valley and other tea-growing areas of North India. Though the early season (first flush) tea production was almost stagnant at last years’ level due to poor rains in North India, however, there has been some improvement in rains post March 15. “We expect to cross the production level achieved in 2011,” Bhanu said. Source: thehindubusinessline.com/industry-and-economy/agri-biz/demand-for-orthodox-tea-may-boost-exports/article4581385.ece