While tea production in Darjeeling has been hit hard due to dry weather conditions at the beginning of the year and excessive rainfall afterwards, tea prices for the crop have registered a moderate increase in the last two months.
According to Indian Tea Association, tea production in Darjeeling during June 2012 has come down by 6% compared to June 2011. Darjeeling produced 1.34 mkgs tea in June, 2011. A provisional estimate of Darjeeling Tea Association shows that production during the January-June period is down by as much as 40% in some gardens.
?We were not expecting drop in production in June-July period but that seems to be inevitable. July production will be down by at least 5%. Overall production will also be lower during the year. Next three-four months are crucial for us as bulk of production comes during that period of the year,? said Darjeeling Tea Association chairman SH Bagaria. While gardens in Darjeeling did not receive sunshine in June, excessive rainfall in the hills is threatening the crop now.
According to industry estimates, production till the third week of April was down by as much as 40%.
First flush, which constitutes 25-30% of Darjeeling?s production was hit by dry spells during October-March period. Darjeeling tea bushes require a rainfall of around 3-4 inches during October-March while it received 0.5 inches this year. Lower rainfall was accompanied by prolonged low temperature beyond February this year.
While in 2011, gardens in Darjeeling produced 9.7 mkg against 8.8 mkg a year ago, 3.7 mkg was produced in the first six months last year.
Meanwhile, average auction prices during the January-June period have increased by an average of R36 per kg during over the similar period last year. Last year average auction price for the Darjeeling crop was R316.46 per kg against R310.6 per kg in 2010. ?We are getting good prices so far. But you have to keep in mind that cost of production has also increased after the wage revision last year,? Bagaria said.