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Time of India
28-06-2025
- Business
- Time of India
Bengal jute industry frets over import ban through land ports
1 2 Kolkata: The ban imposed on the import of raw jute through land ports by the Union commerce ministry will cripple the sector in Bengal, leaders of the jute industry said on Saturday. Around 90% of jute-related manufacturing occurs in Bengal. The Indian Jute Manufacturers' Association (IJMA), the umbrella body representing the industry, plans to reach out to the ministry urgently, seeking a modification in the notification so that raw jute and yarn can continue to be imported through Petrapole in North 24 Parganas. "India annually imports around Rs 2,000 crore of jute and jute products from Bangladesh. Value addition is done in Bengal and finished jute products are then re-exported. The govt should ban the import of finished products from Bangladesh as the govt there provides a huge subsidy to the industry. But the ban on raw materials will hurt the industry here. Importing jute bales and yarns through the Nhava Sheva sea port in Navi Mumbai will increase the cost and drive away the relative price advantage that companies manufacturing jute products enjoy in this region," said Hemant Bangur, chairman of Gloster Ltd, one of the leading jute companies in India. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo You Can Also Check: Kolkata AQI | Weather in Kolkata | Bank Holidays in Kolkata | Public Holidays in Kolkata Kartik Chakraborty, secretary of Customs Clearing Agent Association, Petrapole, said jute items comprised 60% of the trucks that crossed the border into India from Bangladesh. "After the Bangladeshi garment import ban through land ports was announced on May 17, the number of trucks that entered India reduced from 150-200 a day to 70-80 daily. Now, with the ban on jute products, only 15-20 trucks will arrive. Around 50 trucks, loaded with jute-related items and were about to cross the border on Friday when the notification came, turned back on Saturday," Chakraborty recounted. A ban has been imposed on imports of certain jute products and woven fabrics through all land routes, citing strained relations between the two countries. The goods under these curbs include jute products, flax tow and waste, jute and other bast fibres, jute, single flax yarn, single yarn of jute, multiple folded, woven fabrics or flex and unbleached woven fabrics of jute. Ghanshyam Sarda, chairman of Sarda Group, which owns Agarpara Jute Mill, said the circular requires further clarification. "While it states that the import of jute and other textile-based fabrics is restricted, it does not explicitly specify whether hessian and sacking bags fall within the scope of this restriction. It is a matter of serious concern that the import of hessian fabric and jute bags continues to remain unrestricted, whereas the import of raw jute from Bangladesh — an essential input for domestic manufacturing and vital to addressing the raw jute shortage in India — has been placed under restriction. We are hopeful the Centre will revisit the matter and take appropriate corrective action in due course," he said.
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Business Standard
27-06-2025
- Business
- Business Standard
Tea exporters cautiously optimistic as Israel-Iran ceasefire lifts demand
The ceasefire in the Israel-Iran conflict has brought a sense of cautious optimism among Indian tea producers and exporters, who had seen orthodox tea prices slide amid rising tensions. Orthodox tea prices had declined in the wake of the crisis but are now showing signs of recovery, even as exporters and traders reassess risks and the demand outlook. At the Kolkata auctions held this week, the average price of orthodox leaf teas was Rs 290.66 per kg, compared to Rs 269.40 per kg last week. Moreover, 78.55 per cent of the teas on offer were sold at the auction held on June 24 and 25, as against 49.26 per cent last week. However, he added that some shippers had decided to hold back their cargo for a bit to see how the situation develops. 'But the signals are positive.' Indian Tea Association (ITA) chairman Hemant Bangur said the demand environment was uncertain last week. 'But I think that is behind us now. The exporters are back at the auctions covering for quantities they had committed to Iran and the CIS countries. But obviously everybody is cautious,' he said. Traditionally, Iran has been one of the top markets for Indian tea. It is believed to be a 30 million kg (mkg) market. In 2022, tea exports to Iran stood at 22.21 mkg. This dropped to 5.92 mkg in 2023 as Iran stopped registering contracts for Indian tea. In 2024, however, tea exports to Iran increased to 9.24 mkg. But direct export figures to Iran do not fully reflect the size of the market, as a significant volume is routed through the UAE, a major re-exporting hub. Even as prices have recovered from the lows of last week, they are yet to return to levels seen before June 13, when Israel launched a surprise attack on Iran. Himanshu Shah, chairman, M K Shah Exports, said tea prices have improved from last week but remain below pre-conflict levels. The next few weeks will be crucial in determining the direction of the market. M K Shah is one of the largest exporters and producers of orthodox tea in India. Mohit Agarwal, director, Asian Tea Company, said cargo was lying at the Nhava Sheva port in Mumbai. 'The buyers are back and enquiries are coming in. The trade should start from Saturday.' 'This was a temporary setback and the expectation is that the market would go back to pre-war level next week.' The season had started on a strong note for orthodox tea. The average price realised for orthodox leaf at the Kolkata auctions for Sale 17 to Sale 24 was Rs 317.32 per kg, compared to Rs 293.69 per kg in the previous year. Sale 17 was held on April 22, and Sale 24 was held on June 10 and 11. The drop in prices last week, however, prompted some producers to convert to the CTC variety. A large tea producer said, 'The plan was to expand the production of orthodox tea. But right now, we are making more of CTC. If things settle down, we will make more of orthodox.' Orthodox tea is mostly exported. In 2024, India produced 118.67 mkg of orthodox tea out of a total production of 1,284.78 mkg; production of CTC stood at 1,149.21 mkg.
Time of India
20-06-2025
- Business
- Time of India
Tea trade disrupted: Iran-Israel war halts exports; Kolkata shipments pile up
KOLKATA: The Iran-Israel conflict has brought to a standstill all tea exports to Iran, the second-largest recipient of Indian tea after Russia. Consignments that have already left the city for Iran are now piled up at Mumbai's Nhava-Sheva port. The sudden break has come at a time tea exports to Iran saw a major revival in 2024 after a muted 2023. Last year, Indian tea exports to Iran grew five-fold to 31 million kg from 5.9 million kg in 2023, when US sanctions against Iran had led to a sharp drop. In 2022, the export figure was 22 million kg. Iran has a 20% share of India's total tea exports, say officials. 'Every year, we export 5 million kg of tea to Iran. But our consignments are lying in Nhava-Sheva since June 14 as the shipping route to Iran is temporarily suspended because of the war,' said Sashi Kanta Shah, chairman of Shah Brother, one of the leading tea exporters in the city. Indian Tea Association chairman Hemant Bangur said exporters were also holding back shipments because they were unsure of payments. At the same time, Iranian importers were also buying time because they were also not sure if they could make payments. Iran primarily imports tea produced in Assam, Darjeeling and Dooars. Assam has the largest share — 80% — of the export basket with the rest being contributed by Bengal. Kolkata is the hub of tea export in north India. 'Orthodox tea grown in Assam and Dooars has a big market in Iran. Besides, high-quality CTC (crush, tear, and curl) tea is also sent there along with Darjeeling tea. Assam tea is blended and packaged in Kolkata before being exported,' said Bijoy Gopal Chakraborty, president of Confederation of India Small Tea Growers Association. Exporters are racing to fulfil pending orders before freight costs further skyrocket, said Anindya Sengupta, co-founder of Small Tea Growers Associates, a city-based manufacturing company. 'The import volume of Iran has already declined while the war has turned the situation for the worse. We are now focusing on the UK and Europe markets,' he added. Sujit Patra, former secretary of Indian Tea Association, said earlier Iran used to import higher quantities of premium Darjeeling tea. 'With the price of Darjeeling tea rising, they have shifted more to the Assam variety and Dooars tea. Exporters from Kolkata primarily use the Mumbai port to send shipments to Iran,' he said.
The Print
18-06-2025
- Business
- The Print
Iran-Israel conflict: Tea exporters anxious, orthodox prices start falling
Indian Tea Association Chairman Hemant Bangur said exporters remain cautious in terms of buying orthodox tea as they are not sure about shipments to Iran and might be worried about payments from importers of that country. They are also apprehensive that exporters may face hurdles in terms of rising freight charges and insurance costs for their shipment to Iran which is in the midst of a military conflict with Israel. Kolkata, Jun 18 (PTI) The ongoing conflict in West Asia has left tea exporters worried, as uncertainty prevailed over shipment prospects to Iran and an early sign of 'falling' prices of the orthodox tea variety, which that country usually imports from India, was noticed, according to stakeholders. 'Exporters have exercised a cautious stance to source orthodox tea through the auction route as they are facing uncertainty over shipment volume to Iran and are concerned about payment. This has pulled both the sale percentage and prices of orthodox teas downward,' Bangur told PTI. The orthodox tea is considered a premium variety and money spinner as it helps planters and traders realise better prices. 'Iran is roughly a 35 million kg market for India and is an important trading partner for us. The conflict between Iran and Israel is a matter of worry. Currently, we are waiting and watching. Exporters are in touch with Iranian importers,' Indian Tea Exporters' Association chairman Anshuman Kanoria told PTI. Due to the uncertainty looming large, exporters remain 'conservative in buying tea for Iran', and this has impacted the sale percentage and prices of the orthodox variety of tea, he said. 'In the last few days, the orthodox tea market in terms of sales and prices has been down by roughly 5-10 per cent, and this is mainly because of the uncertainty arising out of the geo-political tension between Iran and Israel. Prior to the conflict, orthodox market sentiment was optimistic. However, we are hopeful for an early solution to the conflict,' Kanoria said. Echoing him, one of the top exporters, Asian Tea Company's Director Mohit Agarwal said that the sale of the Assam orthodox has stopped since the conflict unfolded and the exporters are anxious. 'Iran is mostly an Assam orthodox market and since the conflict started, the auction sale quantity has dropped and prices of such variety in the auction are down by 5 to 10 per cent. However, it is too early to assess the situation. It is more of a wait-and-watch situation now. If the conflict prolongs, it will cast a shadow on the prospect of tea exports, but we are hoping for a quick resolution,' Agarwal told PTI. The situation could worsen if the tension escalates and the conflict spreads to other countries in the West Asia region, the exporters said. 'If this geo-political conflict persists, it is likely to disrupt the supply chain and adversely impact the overall tea shipment. This may impact the prices of the orthodox variety in the near future. During the April-May period this year, the cumulative orthodox price was Rs 20 a kg higher, while the prices of the CTC variety were flat,' rating agency ICRA Vice President and Sector Head Sumit Jhunjhunwala told PTI. The overall West Asia market, including Iran, Iraq, Qatar, Saudi Arabia and UAE, consumes around 90 million kg of Indian tea, Jhunjhunwala said. South India Tea Exporters Association Chairman Dipak Shah said exporters are keeping their fingers crossed as freight costs and insurance expenses for shipment are likely to increase if the Iran-Israel conflict lasts for a long time. 'Iran predominantly buys orthodox tea from north India, but a certain quantity moves out to Iran from south India. There is apprehension among exporters about how the situation will pan out in the next few days. Obviously, nobody wants to venture into a country engaged in a military conflict,' Shah told PTI. Tea exports from India increased by 9.92 per cent to 254.67 million kg, from January to December 2024, as against 231.69 million kg in the previous calendar year. According to Tea Board provisional data for the period between January and March 2025, the exports during the three months stood marginally higher at 69.22 million kg as compared to 67.53 million kg in the corresponding period of the previous year. PTI BDC NN This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
Time of India
22-04-2025
- Business
- Time of India
Tea growers urge action against fake Indian exports, seek fair pricing
Kolkata: The Indian Tea Association and small tea growers have raised concerns over massive import of tea into the country. During a stakeholder meeting at the Tea Board head office in the city on Tuesday, the ITA and Confederation of Indian Small Tea Growers' Associations (CISTA) raised this before L Satya Srinivas Raju, special secretary, commerce department and chairman of Tea Board. They sought govt action in curbing the massive import and re-export of " fake Indian tea ". ITA chairman Hemant Bangur said it had raised red flag about the import of tea, specially from African countries. CISTA is the national apex body representing more than three lakh small tea growers across 12 state federation bodies from Bengal and other states. Other issues flagged at the meeting included approval of some agro chemicals to combat green fly, price realisation, the need for a generic campaign and the branding of Indian tea. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 35 & Earning? Protect Your Family with ₹1 Cr Life Cover ICICI Pru Life Insurance Plan Get Quote Undo Bijoy Gopal Chakraborty, president of CISTA, said: "Last year, we witnessed massive growth in the import of tea, mainly from Kenya, Uganda, Nepal and other countries. A lion's share of the imported tea is used in the domestic market while the rest is exported overseas in the name of Indian tea." Along with CISTA and ITA, Tea Association of India, Federation of All India Tea Traders Association and Auction Association were also present at the meeting. They pointed out that small tea growers were yet to get a fair green leaf price because of the present price determination. Prabir Kumar Bhattacharjee, secretary general of TAI, said: "The formula takes into account the average auction price of the previous month, but this does not represent a correct pricing for the green leaf. The matter needs to be addressed."
