DTTC records 7.5m kilos of tea trade in 2009
Dubai, February 21, 2010
The Dubai Tea Trading Centre (DTTC), an initiative of Dubai Multi Commodities Centre (DMCC), has reported a record 7.5 million kilos of tea traded through the Centre in 2009.
Although DTTC’s trade volumes witnessed favourable growth of 26.5 per cent between 2008 and 2009, the overall tea trade through Dubai witnessed a drop in the same period in 2009. This was a direct consequence of the global decline in tea production, which has generally been affected due to drought and delayed rainfall in major tea-producing countries.
The drought resulted in a global black tea crop deficit of approximately 56.6 million kilos, equating to a decline of 3.2 per cent compared to 2008.
With recent trend of higher production and favourable climatic conditions in the major producing countries, tea prices have been extremely volatile in the past few weeks. However the general trend still continues to remain buoyant as carry forward stocks are low. Average 2009 auction tea prices in Sri Lankan tea auction was at $3.32 per kilo, Kolkata at $2.90 and Mombasa at $2.72, with overall average world tea auction prices increasing by 12.4 per cent compared to the same period in 2008.
'In the initial few months of 2009, the global tea industry has witnessed an unavoidable production decline due to major drought in many tea-producing countries,' said Ahmed bin Sulayem, executive chairman, DMCC.
'Despite the global decline and the challenges that have risen because of it, DTTC has registered a record amount of tea trade in 2009. We work closely with tea producers, merchant exporters and buyers to further grow the volume of trade through the region, and we are committed to strengthening Dubai’s position as a major hub for global tea trade.'
'The Centre is growing consistently, with increased transactions and global tea producers, merchant exporters and buyers establishing their base here. This is due to our increased 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, all of which make DTTC appealing to international tea traders,' added Sanjay Sethi, director, DTTC.
Dubai remains the second largest export destination for both Indian and Sri Lankan tea, playing a pivotal role in the supply chain for the industry. Sri Lanka, India and Kenya are Dubai’s top trading partners, contributing over 65 per cent of the total tea trade through Dubai.
Capitalising on Dubai’s longstanding position as a global trading hub, the DTTC will host the 3rd Global Tea Forum in Dubai, from March 9 to 10. The only global event in the region specific to the tea industry, the forum is expecting over 300 delegates, representing the entire value chain of the tea industry.
The DTTC presently stocks teas from 13 producing countries, including 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 CIS countries and has plans to expand its services to other Middle East and European markets.-TradeArabia News Service
More Miscellaneous Stories
- BAE Systems falls after UAE halts fighter talks
- Bahrain seizes $7.2m drugs in boat raids
- UAE pulls out of $9.8bn Eurofighter deal
- Saudi's inaugural food expo 'a big hit'
- One million Gazans in need of food aid says UN
- US burger chain to open outlets in Saudi
- $350,000 raised at Dubai charity event
- 2013 deadliest for desperate migrants, says report
- Bahrain sees 25pc drop in fires
- 4,500 to exhibit at Dubai food show