Coronavirus trouble for Indian tea, exports likely to be hit

Tea planters and exporters are keeping ir fingers crossed ahead of new season in wake of coronavirus outbreak as y apprehend that demand from overseas markets will decline and price realisation could be impacted.

Exporters are more concerned about Iran and China, two countries badly hit by coronavirus pandemic.

"Iran is a critical market for us. re is a concern about demand for new season tea from Persian Gulf nation due to coronavirus outbreak. re might be a decline in demand in short term."

"China- epicentre of COVID-19-is a major importer of Indian black tea. Imports of bever from neighbouring country are also expected to be impacted," Indian Tea Exporters' Association Chairman Anshuman Karia told PTI.

China imported over 13 million kg of tea from India in 2019 and is seen as a prospective market for even 20 million kg in next two years, he said, adding that a decrease in imports from neighbouring country will adversely hit Assam tea industry as it mostly buys commodity from re.

"With coronavirus spreading at an alarming rate in China, we do t think that tea export will touch 13 million kg shipment this year," Karia said.

"We have come to kw from exporters that things are moving slowly in terms of bagging new orders, though re were cancellations as such. Iran, which is a key market for orthodox variety of Assam tea, is a concern for us," he said.

Iran had imported around 53 million kg of tea in 2019.

"Tea producers are in tension as y do t kw what will happen in overseas markets," rth Eastern Tea Association's adviser Bidyananda Barkakoty told PTI.

In recent months, shipment of pending orders have been continuing but volume has been low as tea gardens remained closed during winter which is a lean season for industry, Karia said. He said over last few months re have fewer fresh orders.

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outbreak of disease has weakened ecomies of countries importing Indian tea, and this can adversely impact demand, Karia said.

"For example, spread of virus has caused a fall in crude oil prices, impacting ecomies of CIS countries, including Russia and Kazakhstan, which import Indian tea." He said demand for Darjeeling tea in overseas markets could also fall by 10-20 per cent this year.

Darjeeling tea, he said, is mostly an export-oriented product and buyers from Europe and Japan usually visit tea gardens at beginning of season in March before placing orders.

"Many of m could t come this year in wake travel and visa restrictions due to COVID-19. This may lead to eir delay in getting new orders, or demand will be less," Darjeeling Tea Association general secretary Kaushik Basu told PTI.

Germany and Japan are major buyers of first flush variety of Darjeeling tea, he said. First flush is very first plucking of a tea plant's harvest season. new leaves plucked during first flush are youngest, most tender and of premium quality.

"Any adverse impact on sales of first flush tea could be severe for an industry which is under stress, particularly after agitation in hills in 2017," he said.

first-flush Darjeeling tea contributes 22-25 per cent of about 8 million kg, aver annual production in hills, but accounts for 35-40 per cent in terms of value, Basu said.

According to provisional Tea Board data, overall tea exports during calendar year 2019 stood at 248.29 million kg, marginally down from 256.06 million kg previous year.

"If exports come down by 10 million kg in whole year due to coronavirus outbreak, it will wreak havoc in terms of price realisation at farm gate level," he said.

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