Russia is purchasing more tea from India at a cheaper price than supplies from Kenya have become costlier.
India’s tea exports to Russia were 5% higher in the first eight months of 2022 compared with a year earlier, though the price realization fell 13% per kg as that country is buying cheaper teas from South India.
Russia, which prefers orthodox tea, is also now purchasing common variety CTC teas amid growing teabag culture in the country.
Russia is the fifth largest buyer of Kenyan tea. But in recent weeks, Kenyan tea prices have started moving northward. Data from East African Tea Trade Association show that the price of tea has increased to $2.37 (Rs 193) a kg now from $2.27 a few weeks ago.
Mohit Agarwal, a director at Asian Tea Company, said: “Russia is buying teas from South India now. They are less in price compared to Assam teas. So, there is a drop in unit price realisation.”