Low tea output in Sep weakens revival hopes

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Kochi: With tea production falling in Dooars, Terai and Assam Valley during September, any hope of recouping the shortfall suffered in previous months have faded Traders said production September is seen lower by 5 million kgs despite a nominal increase in the South Indian tea estates.

Cumulative tea production for the first nine months of the year (2009) is seen lower by 10 million kgs over last year’s production.

Interestingly output in drought-hit Assam rose has improved in August to touch 82.92 million kg.

According to Tea Board estimates, shortfall in production compared to 2008 narrowed down to just 4 million kgs for the period of January-August 2009.

In the first five months of 2009, the shortfall in production over the previous year was almost 13 million kgs.Crop prospects also looked good with some rains in the producing regions.

But, actual production fell during the month in most places except Darjeeling.

The total drop in tea production in September is close to 6.1 million kgs.

Meanwhile, good rains helped the South Indian estates to improve their production marginally by 0.5 million kgs.Total production for January-September 2009 is estimated at 696 million kgs as against 706 million kgs during the same period of 2008.

Drought-like conditions in Dooars and major portion of Terai has seen production in North India fall significantly in the early part of the year.

In South India , frost during the month of December and January and then the continuous drought in the following months saw drop in production.

Production is not expected to recoup as Northern India production falls with the arrival of the winter season. Tea leaves are damaged by frost during winter months every year.

Exports for the first nine months of the current year stands at 131 million kgs as against 150 millions during the same period of last year.

However unit realization of kilogram of tea exported stands higher at Rs 135.42 for 2009 compared to Rs 112 of 2008. In September, exports were a bit lower than last year.

Traders don’t see exports improving in the last part of the year due to appreciation of the Indian Rupee and high domestic prices.

Exports touched 196 million kg during 2008 as compared to 179 million kg of 2007.