Lok Sabha Question No. 2495 (UNSTARRED), answered on 2017-07-31
Subject: Tea and Coffee Export
Ministry: COMMERCE AND INDUSTRY
Asked by: M. K. RAGHAVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2495 TO BE ANSWERED ON 31 st JULY, 2017

## TEA AND COFFEE EXPORT

## 2495. SHRI M.K. RAGHAVAN:

Will the Minister of COMMERCE & INDUSTRY ( वािणÏय एवं उɮयोग मंत्री ) be pleased to state:

- (a) whether  there  has  been  a  dip  in  the  exports  of  Tea/Coffee  recently  and  loss  of market share in international market;
- (b) if  so,  the  details  thereof  including  the  financial  figures  along  with  the  reasons therefor;
- (c) the measures being taken to recover/increase their market share; and
- (d) whether the Tea Estates of Southern India are facing severe drought and if so, the measures being taken to help them?

## ANSWER

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## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE) (SMT. NIRMALA SITHARAMAN)

- (a) & (b):  There has been a decrease in quantity of around 6 Million Kgs. of tea export in 2016 as compared to 2015.   The  details  of  Indian  tea  export  during  last  three  years  along  with market shares are given below:

|   Year |   Quantity exported (in m. Kg) |   Value (RsCrores) |   India's Share in international market (%) |
|--------|--------------------------------|--------------------|---------------------------------------------|
|   2014 |                         207.44 |            4054.02 |                                       11.36 |
|   2015 |                         228.66 |            4355.32 |                                       12.71 |
|   2016 |                         222.45 |            4468.11 |                                       12.47 |

The decrease in quantity of exports of tea during 2016 is primarily attributed to bumper crop and competitive prices offered by Kenya which affected India's exports to the major CTC  tea  markets  in  general  and  Pakistan  &  UK  in  particular.  At  the  same  time,  tea production in South India had been lower by around 17 Million of Kgs. while gaining on the pricing  front.  This  affected  exports  to  Russia  and  Pakistan  in  particular,  who  primarily import lower- priced teas.

As far as coffee is concerned, the exports and international market share of Indian coffee have shown an increase as detailed below:

|   Year |   Quantity (Tonnes) |   Value (Rs.Crores) |   India's Share in international market (%) |
|--------|---------------------|---------------------|---------------------------------------------|
|   2014 |              287360 |                4840 |                                        4.17 |
|   2015 |              306114 |                5158 |                                        4.48 |
|   2016 |              358610 |                5529 |                                        5.33 |

- (c): In order to increase share of Indian tea and coffee in the international market, focused and sustained initiatives such as arranging buyer-seller meets, effecting exchange of delegations, participating in international trade fairs and undertaking generic promotion of Indian Brands in key markets are taken up by the Tea Board and the Coffee Board.
- (d): The month wise rainfall data of the tea planting districts in the various states of south India shows that there is no drought in the Southern States. However, during the year 2016 a widespread drought occurred in the Southern States which adversely affected production of tea.

The Tea Board is extending financial assistance for setting up of irrigation facilities to the tune of 25 per cent of capital cost not exceeding Rs.80,000/- per hectare with the ceiling limit  of  200  hectare  per  garden.  Pradhan  Mantri  Krishi  Sinchai  Yojana  (PMKSY)  has  been extended to small growers of plantation crops including tea.

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