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Our Bureau

Kolkata, Nov. 20 The year 2008 will start with lower availability of tea than that in the beginning of 2007. This will happen because of the projected shortfall in tea production in the current year, with hardly any carryover stock. Between January and September 2007, the shortfall in production was more than 17 million kg, which might rise to 20 million kg by the end of this year.

As a result, domestic prices of tea will rise in the next year. The drop in the production of North Indian teas during the period was 13.3 mkg compared with 4.2 mkg of drop in production of South Indian teas.

Mr Aditya Khaitan, Chairman, Consultative Committee of Plantation Associations, told newspersons here on Tuesday that there would be drop in exports also. Between January and September this year, the drop was 37.2 mkg vis-À-vis the same period last year and the drop was more in respect of South Indian teas, an estimated 33.6 mkg. The drop in the export of North Indian tea during the period thus was 3.6 mkg. He attributed the drop in exports to rupee appreciation and stiff competition from other tea producing countries, particularly Kenya.

The per kg realisation from exports during the period was higher at Rs 98.6 compared with Rs 91.56 in the same period last year.

The average auction prices till September was less by around Rs 1 per kg vis-À-vis the same period last year. Only from October, prices started showing an upward trend.

The domestic market, as Mr Khaitan pointed out, held out bigger promise compared with the export market which was facing several challenges.

In addition to rupee appreciation and stiff competition, the demand pattern was also undergoing changes in the sense orthodox varieties were in demand as also the Darjeeling teas.

There was now a distinct shift towards value-added types of teas, he said.

Between January and June this year, more orthodox teas were exported to Russia and UAE than before. He hoped that the production of orthodox teas this year might be around 90 mkg compared with 80 mkg last year.

Referring to the India International Tea Convention (IITC) being held in Guwahati from November 22, the CCPA Chairman pointed out that for the first time such a major tea convention was being held in Assam, with full support from both the Union and the Assam Governments.

The Assam Chief Minister, Mr Tarun Gogoi, the Industry Minister, Mr Pradyut Bordoloi, and the Union Minister of Commerce, Mr Kamal Nath, and the Union Minister of State for Commerce, Mr Jairam Ramesh, will be present.

Nearly 50 foreign delegates, including both tea buyers and tea producers, will also attend the three-day convention. In all, around 500 delegates would participate.

Mr Monojit Dasgupta, Member Secretary, IITC, said in addition to tea producers’ associations and Tea Board, several other organisations such as the Indian Merchant Tea Exporters Forum, the Federation of All India Tea Traders Association, the South Indian Tea Exporters Association and the India Trade Promotion Organisation were behind the convention.

Ms Anindita Ray, Director, Tea Promotion, Tea Board, said for the first time visit had been organised for the delegates to Palampur in Himachal Pradesh to showcase Kangra Valley tea. She indicated that campaign would be launched shortly to promote iced tea in the domestic market.

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