MUMBAI, April 8: India’s tea exports during the first two months of 2008 fell 12.4 per cent due to lower demand from Pakistan and Iraq and rising domestic consumption, a senior Tea Board official said on Tuesday.

Tea exports during Jan-Feb was 27.21 million kg, compared with 31.06 million kg a year ago, said Roshni Sen, deputy chairwoman of the Tea Board.

“Exporters are cautious this year due to the remittance problems that happened in Iraq last year,” Sen said.

Figures for exports to Iraq during the period were not available, but India exported about 10 million kg in 2007, sharply down from 41.33 million kg in 2006.

South India witnessed a sharp fall as it exports, mostly to Iraq, said Kamal Baheti, director of McLeod Russel India Ltd, the country’s largest exporter.

Exports from south India fell 23.2pc to 11.54m kg, while north Indian exports fell only 2.2pc.

Higher prices at home have also encouraged traders to focus more on the domestic market, said Basudeb Banerjee, chairman, Tea Board.

“We are witnessing firm prices this year on higher domestic demand and low stock position,” he said.

Indian consumption is seen rising to 797 million kg in 2008 from 780 million last year, according to the Tea Board. In the last one month average domestic auction prices have risen to about Rs80 per kg from about Rs70.

—Reuters