The phenomenon has been blamed on increasing shift of consumer preference from black to green tea across the world, affecting exports, sources said. This shift from CTC to orthodox variety has taken a toll  as India produces very low quantity of orthodox variety. This apart, loss of Iraq market has further contributed to the slump, they added.

Domestic segment

Tea exports in the current year has been pegged at 180 million kilograms, lower by 39 million kilograms compared to previous year while it was 199 million kilograms in 2005, sources said quoting ITA status paper.

Total tea production in 2007 has been estimated at around 940 million kilograms as against 957 million kilograms last year. However, there is good news in the domestic consumption segment which has shown an upward trend and is likely to touch a new high of 810 million kilograms in 2007, up from 790 million kilograms in 2006. There is a possibility of auction prices firming up in view of an increase in consumption.

India’s tea imports will come down to 15 million kilograms from previous year’s level of 24 million kilograms. While projecting the outlook for 2008, sources said prices will be determined by the crop production and export demand sometime around beginning of the monsoon.