Tea production has increased marginally in January 2008 compared to the previous season, traders said. However, traders feel that the production may decline a tad in February and March as a result of more than usual quantity of rains in Tamil Nadu and Kerala.
“Drop in temperature and rains are likely to bring down production and that is felt in the auctions. Market has firmed up in the last few auctions,” Paulose Joseph of Forbes Ewarts and Figgis said. N Sriram of Contemporary Tea Auctioneers also confirms the opinion and feels that the tea market may see firmer days ahead due to problems in Kenya. However, exports were lower for January 2008 as compared to January 2007. Traders feel that increased domestic consumption and problems with Iraq have contributed to the decline. Tea exports during the first month of 2008 stood at 13.8 million kg, compared with 15.6 million kg in the previous year. Production during the period rose to a tad to 21.6 million kg from 21.2 million kg a year ago, according to figures provided by the United Planters’ Association of Southern India.
