According to Tea Board data, Russia bought 34.09 million kilos of Indian tea last year, followed by Iran with 26.18 million kg.
Digital Desk: After many banks in the CIS country’s blocked access to the global financial system SWIFT in the aftermath of the Russia-Ukraine crisis, indian tea exporters expressed concern on Monday about how to resolve payment crises for shipments to Russia, reports said.
Speaking on the issue, Anshuman Kanoria, chairman of the Indian Tea Exporters’ Association (ITEA), stated that everything is unknown and premature.
He added that the blocking of SWIFT access for several Russian banks is concerning.
“Russia is the leading importer of Indian tea, followed by Iran, with which there is also a payment problem due to US sanctions imposed upon the country,” Kanoria said.
Reportedly, in reaction to Moscow’s invasion of Ukraine, the US and its key allies, including the European Union and the United Kingdom, resolved to suspend key sanctioned Russian institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
According to Tea Board data, Russia bought 34.09 million kilos of Indian tea last year, followed by Iran with 26.18 million kg.
Further, Kanoria stated that apart from payment issues with Russia, tea cargo movement to the country is a problem because no deliveries are made at Black Sea ports and most shipping liners do not transport cargo to Russian destinations.
According to Kanoria, the Tea Board has already convened a meeting with Russian exporters, and the Centre is actively watching the situation.
“We’re in touch with the government as well,” he added.
Kanoria said that the Russian Ruble has weakened against the Indian Rupee and the US dollar, adding to the problem.
“The exporting community is optimistic that a solution will be found. Due to financial concerns with both Russia and Iran, it’s a troubling period for the tea sector,” Kanoria said.
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