New Delhi: Export of Indian teas rose by 5.7 per cent in the first four months of 2017, the credit rating agency ICRA said in a statement. The increase is attributed to the decreased supply from the two major tea exporter countries – Kenya and Sri Lanka.
This will have a positive impact on the domestic prices. However, continuing cost pressures, primarily attributable to the increase in wage rates, would keep margins under check, ICRA said.
“While the export performance in recent months is encouraging, the full-year performance will be determined by the volumes during the period June to August, when most of the export contracts are finalised,” said Kaushik Das, Vice President who heads corporate sector ratings at ICRA.
“With the likelihood of lower tea production outside India in Calendar Year 2017, and given the trend in international prices, the prospects of exports from India in the current year appear favourable,” he said.
Even though political unrest in Darjeeling has affected the plucking of second flush, its impact on exports would be known only a month and half later, Das added.