Kolkata, Nov 20 - India's tea exports are not expected to slow down in 2008/09 and will likely cross 200 million kg, junior commerce minister said on Wednesday, as the country looks for newer markets for the beverage.
"I see tea exports crossing 200 million kg in FY09 even under most pessimistic situation," Jairam Ramesh told reporters on the sideline of a conference.
In FY08, India exported 179 million kg of tea, according to Tea Board data, on lower shipments to Iraq following remittance problems.
Exports to traditional markets like Russia were also expected to fall in next few months on lesser imports due to the global financial crisis. See [ID:nLT282952]
But India expects exports to Egypt to cross 15 million kg in the current financial year, from an average of 4 million kg in the past few years, he said.
Similarly, exports to new markets like Iran would touch 10 million kg, from a meagre 5 million kg a year ago on successful promotion of Indian brand there, Ramesh said.
It also expects exports to Iraq to recover from last year's levels of about 3 million kg and touch 20 million kg in FY09 since earlier remittance problems were resolved, he added.
"We see a new market in America that is dominated by ice tea."
Next month, a delegation of industry and federal government officials would also promote Indian tea in Pakistan. Pakistan imported about 16 million kg last year, the minister said.
Meanwhile, to enable virtual trading of the commodity, the state-run Tea Board would start e-auctions in all seven tea auction centres by January 2009.
Currently, about 500 million kg of tea gets traded manually in the auction centres, Ramesh said.
In 2007, the country produced 940 million kg of tea.