24 May 2004 04:36
Southern Tea Aroma May Waft To Russia Yet Again
The efforts of the Tea Board to make a re-entry into the around 150- million kg Russian tea market, where it once had
nearly 80 per cent of the market share with South India having a predominant say may bear some fruits, feel traders. A
cross-section of the traders, whom FE contacted after the visit of an eight-member tea delegation from Russia to Conoor,
Coimbatore and Kochi over the last three days, felt that this time Russians have not been very critical of Indian tea
and have admitted that some of the orthodox varieties were as good as the Assam tea they were now buying. Traders said
that during several interactions earlier with Russian tea traders, there were regular complaints of inferior quality tea
landing there as a result of which India lost its tea market share. According to Mr Sharif Gantsev, head of the Russian
delegation, India’s share had dipped to around 20 per cent with Lanka meeting 50 per cent of the demand, China 25 per
cent and Kenya taking the rest. Even the tea imported from India was the premium orthodox varieties from Assam. It was
after 1998 that the purchasing power of Russians improved and their habits changed making them afford premium tea. Under
the rupee- rouble pact during the Soviet regime, it was bulk purchase and quality was not a major issue. Also the nearly
30 per cent Moslem population in Russia were now keen on having better tea.Mr Sharif said that quality was an issue that
India had to address as the came quality CTC tea from China was available in Russia at a cost 30 per cent less than
Indian variety, though logistics had a major role to play in Russia getting China tea. The regular supply of poor
quality Indian tea had made things worse for India and it was important that a campaign be undertaken to showcase Indian
tea in Russia. He cited the case of China whose cheap products flooded the Russian market earlier and after an initial
boom, consumers rejected the goods. It went to such and extent that initially Russians even found it difficult to accept
Chinese tea which was of superior quality. He said that with the situation improving in Russia and packaging activities
revived, there was scope for tea coming in from India provided it met the quality which he felt should not now be a
problem. Members of the delegation had visited a few estates in the Annamalai belt from Nilgiris to down Valpara. They
also held interactions with some of the traders. Members said they were very pleased with the South Indian tea,
especially the high-grown orthodox variety and had collected samples which would be tested there after which they would
get back to the companies. However, they had a word of caution that the waters in Russia were different in different
cities and local tastes would have to be considered. They also felt that dealing directly with the manufacturer would
give them the price advantage. The tea delegation would visit some of the plantations in North India before returning
home.
[Financial Express] |
RUSSIA IN FACTS
