Kenya officially abolished the minimum price for its tea

Kenya officially abolished the minimum price for its tea

The minimum price policy, set in 2021 at US$2.34 per kilo, was originally introduced to shield farmers fromlosses.However, the regulation led to unintended consequences, including buyers avoiding Kenyan tea at theauction, causing a build-up of unsold stock.

In response, the industry has now reversed the decision, allowing the market to determine pricing.

With the abolition of the reserve price, all players in the tea value chain are urged to uphold ethicalpricing practices.

The Kenya Tea Development Agency (KTDA) announced plans to implement minimum qualitystandards for all Kenyan teas and this initiative is designed to enhance the globalappeal of Kenyan tea and increase export competitiveness.

The reintroduction of Direct Overseas Sales allows farmers to sell their produce directly from theirrespective factories, bypassing the traditional auction system.

Source: The Monitor (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

India's tea exports up over 23 pc in January-July period

India's tea exports up over 23 pc in January-July period

Tea exports from India saw a healthy 23.79 per cent growth (year-on-year) to reach 144.50 million kilogramsin the January-July period this year.

The country exported 116.73 million kg in the same period in the year2023. The export of tea increased by 27.77 million kilograms this year compared to the same period last year. However, the single unit price during the first seven months of 2024 has remained at Rs 256.37 per kg. Itwas Rs 264.96 per kg in the same period last year.

Meanwhile, a scheme of Rs 664.09 crore was approved forthe development and promotion of the tea industry.The development of tea industry includes plantation development and quality improvement, promotion andmarket support, technical intervention, research and development and welfare and capacity buildingmeasures.

According to the 2023 data, India is the second largest tea producer with production

of about 1350 million kg.India consumes about 18 per cent of the world's total tea

consumption.

Source: Daiji world.com/IANS (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Nepal tea exports rise in 1Q

Nepal tea exports rise in 1Q

The export of tea in the first quarter of the current fiscal year increased by 36 per cent compared with theyear on year and 6,426 metric tons of tea was exported in the first three months of the current fiscal year.

The export of tea, in terms of price,increased by more than 50 per cent compared to the same period last year and totaled Rs 1.71 billion.

The export of Nepali tea increaseddue to a decline in production in India.

Source: Nepali live today (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

ource: Vietnam News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Vietnam Producers ask to improve tea quality

Vietnam Producers ask to improve tea quality

Domestic companies are being encouraged to produce high-quality tea products, such as specialty teas, toserve local consumption and service demand for exports.

In the 2018-23 period, Việt Nam exported between 125,000 and 140,000 tons of tea each year, bringing in aturnover of US$220-240 million per year. During the period, some enterprises provided high-end tea products with prices ranging from $15,000to over $50,000 per ton, much higher than the average export price of Vietnamese tea at only $1,700-1,800per ton. However, the ratio of these quality tea products remained low.

Over the past eight months of this year, Việt Nam shipped 92,280 tons of tea for over $162 million, up 30per cent in both volume and value. Among some export markets that saw a sudden growth were Iran, up 2,720 per cent, and China, up 240 per cent. The global tea market is expected to reach $37.5 billion in2025, up from $24.3 billion in 2016.

Source: Vietnam News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

General Instruction for Exporters

The lnland Revenue Department has taken steps to streamline and expedite the VAT refund

process, effective from April 1, 2025. All eligible exporters for VAT refunds are requested to pay special attention to the following points: 

1.All exporters are required to submit their VAT returns on monthly basis.

2.VAT returns are expected to be filed on time through the online facility provided.

3.All schedules related to VAT returns are expected to be correctly upload in the given  format to the RAIVIIS system.

 (All VAT schedule formats and filling instructions are available in the IRD web site under Downloads)

https://www.ird.gov.lklen/Downloads/SitePaees/Schedules.aspx?menuid=1604

4.As the VAT refunds would be directly deposited in to the taxpayers' bank account,Exporters are advised to update their bank details in the RAMIS system.

5.Taxpayers are required to update their profiles in the RAMIS system. Keeping the taxpayer profile up to date will help to minimize delays in the refund process.

6.Site inspection is a mandatory requirement for refunds. Therefore, exporters must facilitate the site inspection process by providing the required information promptly.

7.As required by the law; exporters are advised to take necessary steps to have foreign exchange (export proceeds) remitted through the Bank within 6 month period from the end of the taxable period on which the export occurred.  Your prompt attention to these matters is crucial for expediting the refund process. For any queries regarding this notice, please contact the following officers:

Mrs. P.G.C.Wasanthika (Senior Deputy Commissioner) T.P - 011-2134760

Mrs. R.A. L. Ranasinghe (Deputy Commissioner) T.P. - 011-2134767

Mr.  B.C. Rohitha (Deputy Commissioner) T.P. - 011-2134764

Commissioner

Export Refund Unit

lnland Revenue Department

Climate-smart tea seed variety introduced – India

To combat the ill effects of climate change, a climate-smart new seed variety ‘TSS 2’ which can withstand high temperatures and yield quality crops has been introduced.

This new seed variety has been introduced at a time when tea production is down by 80 million kg till now in 2024 due to extreme heat and climatic factors.

Extreme heat is making a significant impact on tea plantations in Assam and north Bengal, the two largest tea-producing regions in the country.

The traditional tea-growing calendar is being disrupted due to erratic weather patterns. Tea plants require a balance of warmth and moisture, but prolonged heat can dry out the soil, stressing the plants and stunting their growth.

Source: Business Standard (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Ethiopia witnesses 34 % growth in tea industry

Ethiopia’s tea industry recorded a 34 percent growth in the 2023/24 fiscal year, with exports surpassing 1,142 tons and generating US$ 2.33 million in revenue. This marks an increase of 292 tons compared to the previous year’s exports.

Despite exporting 50,000 tons of tea leaf, there is still untapped capacity in the sector. Historically, Ethiopia’s tea production was limited to 5,000 hectares of land, with foreign exchange earningsnever exceeding US$3 million annually.

In an effort to expand the industry, 460 million tea saplings were planted across 30,000 hectares during the2023/24 fiscal year.This follows a 2016 initiative that saw over 7,813 hectares planted with tea seedlings, contributing to anationwide total of more than 48 million seedlings.

Tea is recognized as a strategic crop providing both foreign exchangeearnings and employment opportunities.

Source: African Business News (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

China warns investors in herbal ingredient market

China’s Administration for Market Regulation recently published anti-monopoly guidelines for thepharmaceutical sector, including teas and herbs used in Chinese Traditional Medicine (TCM).

The guidelines suggest closer scrutiny of unregulated tea and herbal ingredientmarkets.

Investment activity in tea and herbshit arecord high in July as some medicinal leaves, roots, and bark tripled in price.

Trading has been brisk in the premium Pu'er sector of the tea market. Experts say Pu’er, typically sold in 137g “cakes,” improves in quality as it ages. Pu’er cakes are traded and collected much like vintage wine.

The tea futures market is and alwayshas been highly unregulated. No one except the participants oversee it. Investors should be on high alert.

Source: STiR Coffee & Tea (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Fertilizer for Kenyan smallholder farmers

The Kenya Tea Development Agency (KTDA) has procured the first of two batches of a total of nearly 97,000 metric tons of NPK fertilizer on behalf of r smallholder teafarmers with the second consignment to follow shortly.The amount procured is an increase from the 88,000 metric tons procured last year.

The NPKchemically compounded fertilizer will be bagged at the port and distributed to farmers, ensuring efficient and timely delivery for farm application. Applying fertilizer at the start of the short rains is crucial for maintaining the high quality and quantity of green leaves required for premium tea production.

The final cost of the fertilizer which will be will be determined by severalfactors, including the cost of natural gas (a key component in manufacturing NPK fertilizer), exchangerates, shipment costs, marine, and overland insurance costs, as well as clearing and transportation coststo the respective tea factories.

Source: The Star (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka

Catechin market to reach $ 31.9 million by 2033

The global catechins market is expected to develop significantly, with a value of USD 18.5 million in 2023. ACAGR of 5.9% is predicted to be maintained by the year 2033. Such consistent growth estimates indicatethat the worldwide catechins market is on pace to achieve an astounding valuation of USD 31.9 million by2033.

Catechin, a polyphenol primarily found in green tea leaves, is significantlyimpacted by the changingdynamics of the polyphenols market. Key drivers influencing this market include the escalating demand forfunctional foods and beverages and advancements in polyphenol extraction processes. Such factors play apivotal role in driving the growth of the catechin market.

Catechin has gained extensive usage in the functional food and beverage market, primarily due toconsumers’ growing inclination toward adopting a healthy lifestyle.

Green tea enjoys widespread consumption in countries such as China, Japan, India, and the United States.Green tea is increasingly recognized for its medicinal properties and high antioxidant content.

Source: Future Market Insight (Extracts), Courtesy: Tea Exporters’ Association Sri Lanka