Indian tea producers struggle

26 October 1998

Indian tea producers struggle

INDIA is struggling in the world tea sector because Sri Lanka and Kenya sell their teas much more aggressively in the world market, reports the Financial Times.

SS Ahuja, chairman of Indias Tea Board, says the industry has been given a target to achieve production of 1 billion kilogrammes and exports of 265 million kilograms by 2003.

India produced 810m kg and exported 203m kg of tea last year, but its ambitious output targets have been threatened by the collapse of Russian demand.

The Indian federal Governments calculations have also been upset by its decision to allow unrestricted tea imports from the member states of the South Asian Association for Regional Co-operation and the imposition of an 8% excise levy on branded tea packets.

  • Financial Times 26/10/98 page V111 (India section)

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