• Home
• /
• Local business

DTTC Demonstrates Strong 2009 Growth

DUBAI — The Dubai Tea Trading Centre, or DTTC, said on Sunday that the centre recorded a strong growth in tea trade last year despite a global decline in tea production due to drought.

DTTC, an initiative of Dubai Multi Commodities Centre, or DMCC, said a record 7.5 million kilogrammes of tea traded through the centre in 2009, despite adverse weather conditions reducing global production.

DTTC, which presently stocks teas from 13 producing countries, said trade volumes witnessed favourable growth of 26.5 per cent between 2008 and 2009. However, the overall tea trade through Dubai witnessed a drop in the same period in 2009 due to global decline in tea production.

In a statement on Sunday, the DTTC said drought resulted in a global black tea crop deficit of approximately 56.6 million kilogrammes, equating to a decline of 3.2 per cent compared to 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 of the 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,” bin Sulayem said.

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.

Volatile Prices

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, the statement said.

“Average 2009 auction tea prices in Sri Lankan tea auction was at $3.32 per kilogramme, 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,” it said.

Sanjay Sethi, Director of DTTC, said: “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.”

Tea Forum

Capitalising on Dubai’s longstanding position as a global trading hub, the DTTC will host the third Global Tea Forum in Dubai, on March 9 and 10, 2010. 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 Kenya, India, Sri Lanka, Indonesia, Malawi, Rwanda, Tanzania, Zimbabwe, Ethiopia, Vietnam, Nepal, China and Iran. In order 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, the United Kingdom and the CIS countries and has plans to expand its services to other Middle East and European markets.

muzaffarrizvi@khaleejtimes.com