Business | Markets
Dubai's tea trade in first half of 2010 brews up on production hike
Overall transactions through Emirate increase to 64.2M Kilos
- Gulf News Report
- Published: 00:00 September 2, 2010
- Image Credit: Rex Features
- "Favourable climatic conditions in the first half of this year have led to an increased tea production by more than 107 million kilos."- Ahmad Bin Sulayem Executive Chairman, Dubai Multi Commodities Centre
Dubai: The Dubai Tea Trading Centre (DTTC), an initiative of Dubai Multi Commodities Centre (DMCC), yesterday said, it has recorded 6.2 million kilos of tea transaction in the first six months of 2010.
The overall tea trade through Dubai for the first six months of the year increased to 64.2 million kilos, an increase of 11.3 per cent from 58 million kilos, primarily due to favourable growing conditions resulting in higher production in most tea producing countries.
"With the recent trend of higher production and favourable climatic conditions in the major producing countries, tea prices have been extremely volatile in the past few months. However, the general trend still continues to remain buoyant as carry forward stocks are low and there is good demand," DTTC said in a report.
The Middle East and African region accounts for 13.8 per cent of global tea consumption, and is the second largest consumer of tea globally.
Deficit
"Last year, global tea production saw a deficit of nearly 60 million kilos of tea due to drought in major tea-producing countries," said Ahmad Bin Sulayem, Executive Chairman, DMCC. "However, the favourable climatic conditions in the first half of this year have led to an increased tea production by more than 107 million kilos. At DMCC, we remain committed to increasing tea trade through Dubai and strengthening the emirate's position as a major hub for global tea trade. Through our efforts, we are confident that Dubai will play a pivotal role in the supply chain for the industry."
Dubai remains the second largest export destination for both Indian and Sri Lankan tea. The DTTC presently stocks teas from 13 producing countries, namely: Kenya, India, Sri Lanka, Indonesia, Malawi, Rwanda, Tanzania, Zimbabwe, Ethiopia, Vietnam, Nepal, China and Iran.
In keeping with its mandate to further increase the tea trade in and through Dubai, the DTTC also facilitates sales with buyers in the GCC countries, Iran, Iraq, Jordan, Libya, Morocco, Pakistan, Afghanistan, UK and the Commonwealth of Independent State countries and has plans to expand its services to other Middle East and European markets.
Sanjay Sethi, Director, DTTC, said: "Since its inception in 2005, the Centre has grown consistently, with increased transactions and global tea producers, merchant exporters and buyers establishing their base here. As we continue to enhance our services for the trade, we have witnessed an increased demand for our value-added services such as blending, packaging of tea bags as well as loose tea in retail formats, storage facilities and office space for tea companies."
Dubai Tea Trading Centre registers 26 per cent growth in tea trade during first half of 2010
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