Nilgiri (Tamil Nadu): Tea traders in The Nilgiris, a region in Western Tamil Nadu famed for its tea, are worried that the ongoing war Russia has waged in Ukraine will majorly impact India's tea export numbers.
Speaking to ETV Bharat, Sriram, president of the International Tea Auction Institute, said, "Every year, 4 crore kg of tea is exported from India to Russia and 1.5 crore kg to Ukraine. Up to 40 per cent of these tea exports come from The Nilgiris. Two crore kg of tea was exported from The Nilgiris to Russia and 1 crore kg to Ukraine this year".
Sriram said that US sanctions have played a major part in the crisis. "The Government of India is currently proceeding trade process in Russian currency, the Ruble, to alleviate the problem of tea exports", he said. "Once the process is completed, the Indian Trade Organization will import crude oil and fertilizer from Russia in Rubles and export tea to the country in return. CTC tea produced in the Nilgiris, which is much sought after by Russians, has also stagnated", he explained.
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According to data available on the website of Tea Board of India, India's total export to the Commonwealth of Independent States (CIS), an intergovernmental organisation in Eastern Europe that includes both Russian Federation and Ukraine, and was founded after the collapse of Soviet Union in April-December 2021, stood at 33.02 million kg priced at about Rs 589.11 crore (provisional figure).
Out of it, Russia alone was the destination for the lion's share of tea, around 25.77 million kg. Compared to the figure, exports between April-December 2020 to CIS stood at 37.53 million kg for a price of Rs 706.66 crore, with Russia accounting for Rs 487.04 crore alone. The reduction in export that has already occurred between 2020 and 2021, as per various reports, can be attributed to unclear payment patterns with Iran and a more affordable alternative in tea produced in Africa. The wave of recent sanctions by the US and its NATO counterparts has been a major cause of worry for many traders in the region, as they suspect the economic fallout will damage both tea exports and the economy.
