Indian tea producers are likely to suffer from the exchange of Iranian and Lankan tea for oil.

Sources in the United Planters Association of South India (UPASI) said the agreement between Iran and Sri Lanka is for procurement of orthodox leaves, with the island nation a major producer worth $5 million over 48 months, worth approximately 250 million dollars. According to the sources, the tea-oil exchange would help Sri Lanka become a major supplier to Iran. A senior Sri Lankan tea industry official, who did not want to be identified, told the company that the exchange was only a vehicle. that Sri Lanka would pay $250 million owed to Iran for fuel purchases made in 2012. It will be paid over 48 months in tea shipments worth $5 million a month. He said the Memorandum of Understanding (MoU) was signed in December 2021, but its implementation began in August 2023. It said it will be ready by September 2027.

Increased market access

Indian tea shipments have arrived in Iran, according to Upas sources. will significantly decrease from 54.45 million kilograms in 2019 to approximately 6 million kilograms in 2023 due to the payment crisis (5.16 million kilograms in January-November 2023). Similarly, India’s share of the Iranian market has declined from 21% in 2019 to 2.5% in 2023. UPASI officials called for smoothing trade routes and improving market access by integrating trade issues into government-level dialogues with key export destinations such as Iran and other destinations opening up new market opportunities.

Kochi sales improve

India’s tea exports. decrease in Jan-Nov 2023 2.46 million kg to 207.14 million kg, mainly due to the lower price of tea. supply to some important destinations such as Iran, whose imports decreased by (-) 15.7 million kilograms, the Russian Federation (-) 10.03 million kilograms and the United Arab Emirates (-) 5.5 million kilograms. Meanwhile, the Kochi auctions were good questions. and active participation of buyers from the CIS countries, the Middle East and Tunisia resulted in 94 percent of the 1,81,773 kilograms of Orthodox magazines offered for sale. Iraqi buyers did good buying in expensive and secondary grades, leading to gains of ₹10-20. The closure of tea houses in the north due to winter forced north Indian buyers to look for auctions in southern India. . This northern buying trend will continue for some time when the plantations start functioning in March-April, traders said.

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