Date:08/09/2007 URL: http://www.thehindubusinessline.com/2007/09/08/stories/2007090852591200.htm

Back Tea exports turn cold on rupee’s rise

Our Bureau

Kochi Sept. 7

With the erosion in the value of the dollar and the appreciation of the rupee, domestic tea exports have become uncompetitive in the international markets by as much as 10-15 per cent in price, the Tea Buyers Association, Kochi, has said.

Mr K.J. Shah, President of the Association, said while appreciation of the rupee to abnormal levels has had its impact on the trade in general, it is the merchant exporters who have been the worst affected. Export realisation of this section has significantly come down also due to higher interest rates and increase in ocean freight charges.

Exports fall

While the tea sector has been picking up as a result of Government measures, there has been a fall in tea exports due to the unprecedented appreciation in the value of the rupee, the Association pointed out.