Russian tea imports to rise

Fairfax Media

NICE CHAI: Russia, the world's largest tea importer, will increase purchases by up to 5 percent this year as consumers shun more expensive beverages to better cope with the economic slowdown.

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Russia, the world's largest tea importer, will increase purchases by up to 5 percent this year as consumers shun more expensive beverages to better cope with the economic slowdown, an industry lobby group said yesterday.

Rusteacoffee head Ramaz Chanturiya said he expected Russia, which relies largely on imports to quench its traditional thirst for tea, would raise purchases to between 185,000 tonnes and 187,000 tonnes this year from 178,000 tonnes in 2008.

"The financial crisis will shift demand to traditional tea from juices, energy and other fashionable and expensive drinks," Chanturiya told reporters on the sidelines of the Moscow International Tea Symposium. "However, the quality will suffer."

Russia, which grows little of its own tea, has built up its domestic tea-packaging industry after doubling the lowest rate of an import tariff on teabags to 0.8 euros per kg in 2003 and dropping a 5 percent tariff on loose tea in 2007.

Chanturiya, whose organisation represents Russia's main tea- and coffee-packaging companies, said the country would this year boost tea exports, as well as consumption, as a similar demand trend had emerged in neighbouring countries.

Russian tea exports, mainly to Kazakhstan and Ukraine, rose 10 percent last year to 11,000 tonnes.

"This year, export volumes may rise by up to 2,000 tonnes," he said.

Chanturiya's forecast reversed a short-term estimate made last year, when he predicted tea and coffee imports would drop by about 20 percent in the three to four months from October.

The drop in imports over this period, which is close to an end, had the effect of pushing down global tea prices to a point where Russia could afford once again to import, Chanturiya said.

Sri Lanka and India were the main suppliers of tea to Russia last year.

"But imports from Sri Lanka declined by 5 percent to 65,000 tonnes because of high prices, while imports from India rose by 4 percent to 45,200 tonnes. This year, import volumes from both countries may be equal," Chanturiya said.

"Other suppliers like China and Indonesia also have a good chance of increasing imports."

Michael Bunston, honorary chairman of the International Tea Committee, said data from his organisation showed Russia last year imported 170,000 tonnes and consumed 173,000 tonnes of tea.

He said these volumes were little changed from 2007.

The latest Russian customs data showed the country imported 181,800 tonnes of tea last year, practically the same amount as in 2007.