India's export of Darjeeling tea to Japan, the third largest buyer of the premium quality beverage, is likely to be hurt as demand slows from the disaster-hit Asian giant, traders and industry officials said. Japan accounts for less than three percent of total tea exports from India but ranks only behind Germany and Britain in buying the Darjeeling variety.
"We have not received any fresh orders from Japan after the earthquake. Our last shipments to Japan were in February," said Anuj Malhotra, owner of a Delhi-based exporting firm Pekoe Tips Tea. Japan imported nearly one million kg of Darjeeling tea in 2010, according to two officials of the Darjeeling Tea Association.
"There is a big possibility of default and cancellation of orders in the next two-three months," said Malhotra. The annual production of Darjeeling tea, grown on the foothills of the Himalayas in eastern West Bengal state, stood at around 8-8.5 million kgs. About 75 percent of this is exported, industry officials said.
Industry officials also expect that Japanese importers might not turn up in the next auction due to possible lower demand in that country. India, the world's second biggest producer of tea after China, produced 966 million kg in 2010, down 1.3 percent as pest attacks slashed output.
Comments
Comments are closed for this article.