As per the latest figures of the Tea Board furnished at its September 16 meeting, the average of total tea sold at North and South Indian auctions during the six-month period January to July this year, registered a substantial decline of 10.75 per cent and 22.26 per cent respectively over the corresponding period of last year.

The decline in tea prices at Coonoor auction was the highest at 23.55 per cent, followed by Coimbatore at 23.21 per cent, Cochin at 19.32 per cent, Calcutta at 11.47 per cent, Siliguri at 11.45 per cent and Guwahati at 9.30 per cent during Jan to July 1999 as compared to the same period during 1998. This, according to the Tea Board, puts the overall decline at 14.20 per cent in price at all India level during the first six months of 1999 as compared with the corresponding period lastyear.

However, this declining trend in tea prices prevailed across the border also and at international level, the prices of tea sold in all the auction centres have also registered a substantial decline during January to July 1999 as compared to the corresponding period last year.

The low price trend at the international level is clear from the fact that at Colombo auction, the prices were SL Rs 107.74 compared to SL Rs 145.31 during Jan to April 1998, at Jakarta it was US cents 115.36 as against US cents 211, at Mombassa it was US cents 181 as against US cents 239 and at Limbe it was US cents 90.95 as against 145.77 US cents.

Despite the fact that the tea production in the country during the January to Mayl, 1999 went down by 51 million kgs as compared to the corresponding period last year due to extreme drought conditions in Assam and West Bengal, the prices of tea during the last few months are lower compared to the same period last year.

As per the preliminary estimates made by the tea board, theproduction of tea during May 1999 was estimated at 60.44 million kgs as against 70.56 million kgs during May 1998. The production upto May 1999 was estimated at 170.43 m kgs as against 221.41 m kgs, showing a shortfall of 50.98 m kgs during the current year.

However, the prices have staged marginal recovery following fresh enquiries coming from Russia. The industry experts, however, are of the view that the prices would continue to fall even in the near future especially if the high crop is harvested during the latter part of the year, as experienced during the last two years. However, if the export target of 160-170 m kg is achieved, the prices would move up and remain steady at Rs 60 to 65 level.

Tea planters in South India are worried as the tea prices in South India auction had gone down drastically and the current price level was not even meeting the cost of production. Moreover, with the ongoing wage negotiation, it is felt that the cost of production would again go up and the entire industry wouldbe in a difficult condition.