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Agri-Biz & Commodities - Tea
Tea prices may rise on supply shortfall

‘Financial support for orthodox output to continue’.

Our Bureau

Kolkata, Feb. 10 The year 2009 has started with a shortfall in tea availability, according to Mr Monojit Das Gupta, Secretary-General of the Indian Tea Association (ITA).

Addressing the 108th annual general meeting of the Surma Valley branch of the ITA at Silchar (Assam), Mr Das Gupta said the year 2008 ended with an estimated tea production of 970 million kg (mkg) against the domestic consumption of 825 mkg and exports of 190 mkg.

Rise in prices

This would inevitably lead to rise in tea prices in 2009. “The year 2008 saw much needed improvement in price realisations across tea growing regions,” he said pointing out that all India auction tea price averaged at Rs 85.54 a kg while the North Indian tea alone averaged 94 per kg and Cachar tea at around Rs 80 a kg.

While the export gains were visible up to August 2008, the situation perceptibly changed from September, with the global meltdown, he said.

Financial support

The Tea Board has confirmed continuation of the financial support for orthodox production in the 11th Plan, he said pointing out that the support, which also included assistance for modernisation and installation of orthodox machinery and for quality upgradation, has shown some results.

ITA, the Secretary-General said, has taken up with the Assam Government the issue of moderating the annual land revenue rates in respect of Barak Valley and making the moderated rates to be effective from a prospective date, i.e., the date of issue of notification. ITA, has also taken up with the Union Government the need for bringing plantations under the ambit of transport subsidy scheme for the North East.

“We’ve sought the Assam Government’s support in this regard”, he added.

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