Kochi, Nov 28: The average price of the south Indian teas at all the three auction centres have remained subdued over the past few weeks in spite of a general decline in output. The average price of the tea in south India from January-October 1999 has remained only in the range between Rs 56-60 a kg, whereas during the corresponding period in last year the price had averaged Rs 70 a kg.According to sources in United Planters Association of South India (UPASI), South Indian tea production, the cumulative production up to October '99 this calender year was 156.6 million kg while last year the production during the corresponding period was 8 million kg up at 164.6 million kg. The prices have remained subdued this year despite low production because of low exports during the year, according to key market operators in Kochi. From January to August this year, the total exports of south Indian tea has been only 54.54 million kg against the quantity of 70.59 million kg in 1998.
The tea exports are likely to bemuch lower from south India this year, said leading producers and exporters here. Auction prices are likely to move up in tandem with good export demand, according to brokers. These are likely to improve only by next year when the shortfall of the crop during this year will be felt, they said.
The October crop harvest this year was 17.4 million kg, up by over 3 million kg over the last year's October crop of 14.2 million kg. But despite a good show towards the end of the year tea production in the Nilgiri hills is likely to touch only about 193 million kg by the end of this year. Tea output from the southern hills last year was over 200 million kg.
Sources also said that the weather conditions was conducive to a blister blight attack on the tea crop. A dry spell followed by small showers is best suited for a good tea output, but it is also good for the pathogen to grow and spread. The growers have been warned, said UPASI officials, to take effective control measures.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.