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Jun 6
Tea export: Kenya's misery India's boon
Razib Ahmed June 6, 2006
Know More: India, Indian business, Indian export income, Pakistan 2.0, Indian export income
Kenya is suffering from a devastating drought and its tea production has been seriously hampered. In 2005, Kenya produced 328 million kg of tea but in 2006, the production is expected to fall to 300 million kg. Pakistan imports 80% of its tea from Kenya and Pakistani people are too much fond of Kenyan tea. However, falling production in Kenya has increased the price of tea significantly and thus Pakistani importers are now looking the Indian tea as an alternative. In 2005, India exported about 9.5 million kg of tea to Pakistan. Now Indian Tea Association (ITA) leaders are expecting that this year, India will be able to export 30 million kg of tea to Pakistan. That will be a triple increase.
 
India really seems to be enjoying the Midas touch these days in business. Yesterday, I wrote about India's growing success in textile export because of a cap on Chinese export by western countries. And now, Indian tea export is going to flourish because of devastating drought in Kenya. In sharp contrast, Indian tea producers enjoyed favorable weather in the last few months.
 
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