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Orthodox tea costs fall as banks lose interest in provision of letters of credits

The premium orthodox teas were taking a value of Rs 216.63 per kilo last week, as compared to Rs 238.32 per kilo a year past.

Prices of orthodox teas, that square measure for the most part exported to Islamic Republic of Iran, have fallen nine.1% year-on-year as Indian banks aren’t showing interest in rupee-denominated letters of credit for doing business in Islamic Republic of Iran, same senior executives.

this can be a fallout of the uncertainty in Islamic Republic of Iran once the USA re-imposed economic sanctions on the country, they said.

“We square measure seeing that banks aren’t willing to issue rupee-denominated letters of credit for commerce teas to Islamic Republic of Iran. This has been happening for the past 2 to 3 weeks,” Indian Tea Association chairman Azam Monem told.

“This development has affected costs of orthodox teas. However, we have a tendency to square measure hopeful that there would be additional clarity within the weeks to return as each Asian nation and Islamic Republic of Iran square measure exploring means that to continue oil trade and discuss banking channels,” he said. The premium orthodox teas were taking a worth of Rs 216.63 per kilo last week, as compared to Rs 238.32 per kilo a year agone. This came once exports from Asian nation to Islamic Republic of Iran redoubled thirteen.59% year-on-year throughout January-May to ten.36 million kilo, per Tea Board information. Asian nation exports 29-30 million kilo of orthodox teas to Islamic Republic of Iran annually. foreign tea accounts for concerning ninety fifth of the tea consumed in Islamic Republic of Iran, with state and Asian nation accounting for nearly ninetieth of imports. the whole tea consumption in Islamic Republic of Iran is calculable at one,20,000 metric tonnes per annum, of that ninety eight is tea leaf. however as there has been a drop by orthodox tea costs on account of uncertainty in Islamic Republic of Iran, costs of mud teas have up concerning Sept. 11 compared to a year ago as leading blenders square measure shopping for sensible volumes of tea luggage, the consumption of that is memorizing within the country.

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