Weak Crude Prices may Hurt India’s Tea Exports

Neal Bhai Reports — Weak Crude Prices may Hurt India’s Tea Exports —

India’s tea exports are expected to fall in 2016, hurt by the impact of weak crude oil prices on the Middle East economy, a devalued pound and lower consumption of black tea in the UK, and rising tensions with Pakistan. Lower demand from the global markets has already pulled down the price of good-quality tea by 8-10% compared with this time last year. In 2015, India shipped out 233 million kg of tea.

Growers and traders are concerned about the consequences of Britain’s decision to leave the European Union. India ships around 20 million kg of tea to the UK every year and any weakness to the economy of that country could hurt the shipments. In the first eight months of 2016, exports to the UK dropped 12.64% from a year earlier.

“The pound devaluation has hurt the Indian tea industry the most. Moreover, black tea consumption is dwindling in the UK. According to their own estimates, it has fallen by 15% since 2010 as Britons are embracing green tea and cof fee,“ said Azam Monem, a director at McLeod Russel India, one of the biggest tea growers.“Our worries also remain about the fallout of Brexit in coming years.“

The tea industry is now looking at new destinations like Chile and Canada to expand its global footprint. “Exports this year may be less in comparison to last year by 5-6%. The main concern is that premium teas from India are not moving. We feel that higher Kenyan tea crop this year is the major reason for the lower offtake of Indian tea in global markets,“ said Tea Board Chairman Santosh Sarangi.

Website — www.GoldSilverReports.com

Weak Crude Prices may Hurt India’s Tea Exports


Our site is objectively in letter and spirit, based on pure Technical Analysis. All other content(s), viz., International News, Indian Business News, Investment Psychology, Cartoons, Caricatures, etc are all to give additional ambiance and make the reader more enlightening. As the markets are super dynamic by very nature, you are assumed to be exercising discretion and constraint as per your emotional, financial and other resources. This blog will never ever create rumors or have any intention for bad propaganda. We report rumors and hear-say but never create the same. This is for your information and assessment. For more information please read our Risk Disclaimer and Terms of Use.

Technically Yours,

Team GoldSilverReports.com, New Delhi, INDIA