Internal demand of tea is rising, exports fluctuating

Internal demand of tea in Bangladesh is rising gradually thanks to urbanisation, change in consumer taste along with population growth.

Internal demand of tea was estimated at 60 million kg in FY14 which increased to 65.40 million kg in FY15 and 67.03 million kg in FY16.

The demand crossed 70 million kg level in FY17 and stood at 72.35 million and jumped further to 78.72 million kg in FY18.

Bangladesh Bank unveiled the scenario in its latest ‘Quarterly Review on Tea’ released on Tuesday.

The review also showed that tea export from the country, however, fluctuated during the past five years.

Annual export was US$2.0 million in FY14 which increased to $2.15 million in FY15 but declined to $1.43 million in FY16.

In FY17, tea export jumped to $4.19 million but again declined to $2.92 million in FY18.

“Market diversification is necessary to increase the tea production and to increase the contribution of tea in national export earnings,” observed the central bank review note.

“In this regard, tea production per hector may be increased by ensuring long term loan facility for tea industry, implementing modern production technique, quality plantation and increasing the size of land,” it recommended.