India’s tea export revenues in the first half of the current calendar (H1) are up 6.73 percent from the first half of 2020, despite the fact that shipments have decreased due to the sharp rise in prices received.
Kenya‘s tea production fell by around 10 percent in the first half of the year, which reduced the supply of these teas on the world market. So Kenyan tea importers looked for supplies from other sources, including India.
This increased the demand for Indian teas on the world market. At the same time, the price of Indian teas rose to an average of 265.49 yen per kg from 218.82 yen per kg in the first half of 2020, our analysis of the latest data with the Tea Board shows. Each kilogram brought 46.67 yen or 21.33 percent more than in the first half of 2020.
However, this price increase had an impact on the inclusion of some importers. Also, the various stages of trade restrictions in different countries due to the Covid-19 pandemic had a negative impact on orders, exporters said.
As a result, the amount shipped fell from 95.89 mkg in the first half of 2020 to 84.35 million kg (mkg) – a decrease of 12.03 percent.
Nevertheless, the total profit increased to 2,239.43 billion from 2,098.26 billion due to the higher price. This meant an increase in the treasury of 141.17 billion yen, or 6.73 percent. South India saw higher earnings growth.
In the south, export prices rose from 194.05 in the first half of 2020 to an average of 231.22 per kg – an increase of 19.15 percent. This reduced the shipping volume from 41.03 mkg to 37.99 mkg – a decrease of 7.41 percent.
Nevertheless, the total profit, supported by the higher price, rose to 878.39 billion from 796.19 billion in the first half of 2020 – an increase of 10.32 percent.
In the north, export prices rose to an average of 293.58 per kg from 237.34 in the first half of 2020 – an increase of 23.69 percent. This reduced the shipping volume from 54.86 mkg to 46.36 mkg – a decrease of 15.49 percent.
Nevertheless, due to the higher price, total profit rose to 1,361.04 billion from 1,302.07 billion in the first half of 2020 – an increase of 4.53 percent.