The Hindu Business Line : Erratic rainfall pushes down S. India tea output

Kochi, July 31 Erratic rain fall during the south west monsoon has pushed down tea production in south India in June with no significant rise in output this month. According to Upasi initial estimates, the fall in production in June would come to 1.5 million kg. The drop is across everywhere in Tamil Nadu and high ranges of Kerala, Munnar, sources told Business Line.

In fact, the extended summer showers this year have led to an increase in production during January–May 2007 to 11.6 million kg (mkg) to 85.7 mkg from the corresponding period last year. North Indian output also increased to 240.2 mkg during the first five months of this year, they said.

Uptrend

However, the overall Indian output has shown an upward trend. Meanwhile, in the world scenario, according to the latest reports, the drop in Kenyan production is now at 36 mkg from 42 mkg in April last. The climatic conditions in the major African producer country have not yet improved and, hence, it seems unlikely that in the coming months, they may not be able to make good the losses it made till May last, industry sources told Business Line.

Besides, except Sri Lanka, the production in almost all other countries have shown a decline, they claimed. Therefore, the worldmarket remained buoyant with the potential for Indian tea exports to cross 200 mkg this year, they said.

The Indian tea appears to be in the process of regaining its lost glory in the 1980s as a major supplier of CTC tea into the Arab Republic of Egypt.

Exports

Indian exports to Cairo in mid-1980s used to be at18 mkg. However, in 1990s it lost the market to Kenyan tea on competitive price. Following the reduction in import duty to two per cent now, apart from better trade relations of late, the Indian tea might become competitive.

An Egyptian trade delegation is expected in August in South India for discussions with the trade and visiting the plantations and factories as a follow up to the setting up of a business centre, for marketing south Indian tea, in Cairo, which is to become operational in two months, they said.

Besides, they said, Turkey is emerging as a ‘break through’ destination for south Indian orthodox tea. Similarly, Jordan and Syria are also becoming promising markets for the product and already small quantities are going to these countries.

Add to this, a huge demand from Iraq is said to be in the pipeline as seen from the speculative buying, they said.

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