Global black tea production has fallen by 2.48 per cent over the same period of 2016. Overall, black tea production has reduced from 932.41 mkg to 909.30 million kg. The major fall has happened in Kenya due to adverse weather conditions, where the production has fallen to 232.47 mkg from 280.09 mkg. Bangladesh too has reduced production where it dropped by 4.12 mkg. All other countries have posted an increase in production. This is creating a shortage in the global supply of black tea and a push in demand.
Tea Board of India is planning to setup a tea park in Kochi in Kerala to consolidate all warehouses and other related activities in Kochi. According to Tea Trade Association of Cochin, Tea Board is providing financial assistance in setting up units in the park assumes significance at a time when the tea industry is passing through a very difficult phase. Depending upon the money availability, units could set up blending and bagging facilities hitherto carried out in other regions. This would benefit tea exporters concentrating in Kochi Port in a big way by bringing more revenues to the port.
India's tea industry is eyeing Russia with renewed interest after a gap of 10 years as exports to two key markets of India - Pakistan and Egypt have not shown results.
A delegation of Indian tea producers, merchant exporters and auctioneers is set to visit Russia, the world's fourth-largest tea consumer, next month. The delegation plans to hold talks with buyers at World Food Moscow, which will be held between September 14 and 17. They may also explore the whole of Commonwealth of Independent States (CIS). With palates of Russians changing from orthodox to tea to CTC tea, it makes all the more sense to explore the region well.