Indian tea was and still is famous amongst various parts of the world for its rich flavor, but recently with the sudden decrease of the Kenyan Tea prices, there was a sharp decrease in the sales of Indian tea exports.
Witnessing this decrease, the Kenyan authority, which is the Kenya Tea Development Agency, has kept a minimal reserve value of 2.43 (about Rs 183) per kg for its processed tea products for public sale in Mombasa.
The Price Difference That Caused The Problem
The difference between the prices of Indian tea products and Kenyan tea products was visible in their sales. The Indian tea exports sold for Rs 250-300 per kg while those sold by the Kenyan authorities were almost half the price of what was sold by the Indian authorities. This price variation was questioned by many countries like West Asia, Russia, Kazakhstan, and the US.
The Vision For Future Indian Tea Exports
Most of the exporters are expecting to cross the 200 million kg export mark in 2021. With the increase of the Kenyan tea price to Rs 200 per kg, this seems to be possible. With the demand that has been seen from the past three months, this sale of Indian tea products is a huge relief for all the tea producers in India after the halt caused due to the winter season.
According to the director, Azam Monem, even though the Indian tea exports have been continuously fighting various competitors, with the price stabilized by the Kenyan government, the Indian tea exports would be able to get back into the field.
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Report By Tea Board Commission
According to the reports and surveys by the Tea Board commission, India was able to export 100.78 million kg of tea within the January-July interval at a median value of Rs 271.38 per kg, which is a huge rise considering the previous value of 117.56 million kg a year.
The Secretary of Indian Tea Affiliation, Sujit Patra mentioned that countries like Kenya, Sri Lanka, and Turkey have made agreements and settlements with other tea importing countries like Pakistan, China, etc. India has none of the same. Hence, India is a stand-alone warrior.