The Hindu Business Line : Subdued monsoon affects tea production

Kochi, June 3 Scanty rains in the tea-growing regions of both North and South India through June have affected production. “But for the last few days of June, the average rainfall in the growing regions have been far below normal, hitting both production at the plantations and arrivals at the auction centres,” sources at the United Planters’ Association of Southern India said.

The monsoon seems to have strengthened over tea-growing regions in Assam, West Bengal, Tamil Nadu, Karnataka and Kerala during the last week of June and production is likely to pick up from July onwards.

Below expectations

Tea production in South India was far below expectations in the last couple of months, resulting in a sharp fall during the first five months of this year.

Though the shortfall in tea in North India was not as significant as in April, tea production from the country as a whole fell by 24.39 million kg.

The fall in production has impacted exports from the country.

However, unit value realisation from tea exports have increased on the back of shortfalls reported from other tea-producing countries of the world. This has helped to bolster the total value realised from Indian tea exports.

North Indian tea production fell by 12 million kg during January-May 2009 to 130 million kg compared with the same period a year ago.

South Indian tea registered a 12 million kg shortfall from a smaller base to 85.29 million kg. At the all India level, tea production fell from 240 million kg to 215 million kg.

Exports hit

Exports registered a decline of 13 million kg to 60.03 million kg during the January-May. But unit value realisation firmed up from Rs 98.74 a kg last year to Rs129.10.

Global scenario

Global tea production which was progressing smoothly is likely to face a major reversal this year.

Major producing countries such as Kenya and Sri Lanka have reported lower production and global prices continue to rule firm as demand has begun to outstrip supply.

At the domestic auctions, prices have remained firm as tea continues to be available. But sources said that if monsoons continue to remain weak, prices could firm up further.

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