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Poor rainfall in Assam has cast a shadow on the prospects of first flush tea crop due in March.
This may push up prices, according to industry sources.
The first flush tea requires around two inches of rain each month during January-March for a good crop, said Arun N. Singh, Managing Director of Goodricke Group Ltd.
“Assam hardly received any rainfall in January and even in February, it has been scanty and sporadic in some districts. If the situation continues, it can get critical,” Singh, who is also the Chairman of Indian Tea Association, said.
Rainfall has also been poor in Darjeeling.
“The next one week will be crucial for Darjeeling as the first-flush tea starts coming in by the second week of March. If rains improve, the situation can be better,” Singh said.
Delayed crop
According to Jayanta Kakati, Secretary, Guwahati Tea Auction Committee, first flush tea could be delayed due to the poor rains. “Usually, plucking starts around this time in Assam, but this year, it is yet to begin,” Kakati said.
Some of the plantation companies are looking at irrigating their gardens in the absence of rains.
Nearly 50-70 per cent of Goodricke’s gardens are being irrigated for the first-flush crop, Singh said.
“There is a huge cost involved in irrigation as electricity costs have gone up by nearly 60-70 per cent in the last two years; but the returns are not so high as irrigation does not result in any additional crop,” Singh pointed out.
Price Impact
Tea prices, which have gone up by nearly 55-62 per cent so far during this year, are likely to inch up further due to the demand-supply situation.
Average prices of CTC leaf were up nearly 55 per cent, at Rs 137.16 a kg in Sale 10 held on March 5, as compared with Rs 88.45 a kg during the same period in 2012.
The average dust price was up nearly 62 per cent to Rs 139 a kg in 2013, said J. Kalyansundaram, Secretary, Calcutta Tea Traders Association.
“Prices have remained firm despite these being end-season tea. If the trend continues, prices could move up further,” a senior official said.
shobha.roy@thehindu.co.in
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