Scanty rains hit global tea output

original from: http://www.assamtribune.com/scripts/details.asp?id=may0909/at06

Scanty rainfall for the past about six months has affected tea production in the major tea exporting countries - India, Kenya and Sri Lanka. However, due to the comparatively good harvest in North India, which was 39.7 per cent more in January- February this year, Indian tea industry could somehow resist a massive slump in its overall production. The country still recorded a fall of 6.4 per cent in its overall tea production during January-February this year due to adverse weather condition.

Tea industry sources here said that dry weather condition, during the past about six months, has triggered fears of shortfall in global tea output. Global tea output shortfall has also led to rise in the prices of tea. This year, tea price is expected to rise by 10 per cent to 20 per cent, compared to the previous year.

The weather condition has led to the decline in tea production in Kenya by 12.7 per cent during the first two months of the current year, compared to the corresponding period of the previous year.

During the period, Sri Lanka has emerged as the worst hit country in terms of tea production due to the same factor. The island country witnessed a 41.3 per cent decline in its tea production during the period, said the sources.

In some parts of Assam also, production by the end of April is lower by around 40 per cent. However, rain in the past few days in the State revived the hope of a better crop in May.

Likewise, production in South India is severely hit by the rainless weather condition. Every tea growing region in Tamil Nadu, Kerala and Karnataka has reported to have been affected by the weather condition.

However, an upward trend in the sale of tea in the North Indian tea auction centres was witnessed between January and March this year, compared to the corresponding period last year. This year prices of tea have also shot up in these auction centres.

For example, sources said, the Guwahati Tea Auction Centre (GTAC) recorded sale of 23.1 million kgs of tea, against 20.9 million kgs last year. Here, per kg of tea fetched on an average, Rs 82.33, against Rs 68.09 last year.

The tea auction centre in Kolkata recorded sale of 32.5 million kgs during the period, compared to 23.3 million kgs in the corresponding period last year. The price of per kg of tea sold in the tea auction centre this year was Rs 89.13, against Rs 74.55 of last year.

The tea auction centre in Siliguri recorded sale of 16.7 million kgs of tea this year, against 15.3 million kgs last year. The price fetched by each kgs of tea sold through the auction centre was Rs 79.24, against Rs 64.52 of last year, said the sources.