GS Paper II- International Relations.

Tea exports may dip on Kenya’s 

What’s Happening-
Tea exports, after showing a healthy rise by volume and value in 2015-16.
It may decline this fiscal year due to a bumper crop in Kenya and lower prospects in some key markets.

Key sectors discussed were:

  • Lower exports to Russia (annual purchases of about 45 million kg), the U.K., the U.S., Bangladesh and Pakistan may cause the decline, according to Sujit Patro, secretary, Indian Tea Association.


  • A bumper crop in Kenya (more than 50 per cent rise according to latest statistics) and Bangladesh, which is slowly emerging as a tea-growing nation, led to excess supply and lower prices in the international market.
  • In 2015, Bangladesh had a crop of 66.4 million kg.

Sharp decline:

  • However, Sri Lanka, India’s arch-rival in the international arena, too saw a sharp decline in its output of the commodity.
  • Also, this would be the second year of reverses in South Indian production,mainly due to adverse weather condition.

according to official statistics:
Between April and October 2016, exports stood at 119 million kg against 127 million kg of the same period in 2015.
India exported 232.9 million kg in 2015-16, rising by 17 million kg over the previous year and breaching the 230-million-mark for the first time since 1980-81.

Economic Implication:
India lost market share when it could not match the crop and the prices offered by Kenya.
Loss of Employment.
Loss of Revenue to government.