*MUMBAI :* The Indian tea producers rejoice on increasing export demand as the prices declined due to the overall good production globally. Tea exports from India, the world's largest consumer, grew 20.28 per cent to 59.9 million kg in the first four months of the current year. The stocks of the major tea exporters have gained momentum during the corresponding period on increased demand.
The leading tea stocks like Tata Tea Limited (BOM:500800) gained 11.87 per cent, mean while Duncans Industries Ltd (BOM:590063), Bombay Burmah Trading Corporation Ltd. (BOM:501425) and Assam Company India Limited (BOM:500024) rose to 31.48%, 27.97% and 6.42% respectively during the period of four months from January to April. Tea production increased 9 per cent to 68.24 million kg (mkg) in April, up from 62.59 mkg during the corresponding month a year ago. Much of the increase was in North India, while plantations in the South fell marginally. The country exported 49.8 million kg in the January-April period of the last year, according to data released by the Tea Board. The average price for Indian tea in export markets, however, fell to Rs 123.34 per kg in the reporting period from Rs 127.63 a kg in the year-ago period. The country exports CTC (crush-tear-curl) variety tea to Egypt, Pakistan and the UK and the premium orthodox variety of tea to Iraq, Iran and Russia. India faces competition from Kenya and other African countries for exporting CTC tea, while for the orthodox variety, the competition is from Sri Lanka and Indonesia. The fact that demand for tea remained robust, despite the global recession, supports the assertion that tea consumption is “habit forming” and is relatively price inelastic for most blends except higher priced quality teas. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
