Business Standard

Second flush Assam tea production affected by erratic weather

Barooah predicted that tea output in India might reach a record of 1.13 billion kg from 1.11 billion kg last year, as monsoon this year is expected to be normal

Related News

The premium quality tea producing period, which according to tea industry parlance is known as the 'Second Flush' and generally ranges from May to June, has been rather "short" and "not very sweet" this year for the Assam tea industry.

According to industry captains, this year the weather has been so far "very erratic", coupled with inadequate and erratic supplies of gas and power, thus affecting tea production in the state. Both quality and production have taken a beating till now and prices of teas at auction centres are believed to be down by around Rs . 15 as compared to last year.

"In 2013, the weather so far has been very erratic, starting with a prolonged drought followed by rain with low temperatures and then again a dry spell with temperatures soaring to as high as 37 degrees celsius. Both production and quality have suffered and the prices are about Rs .15 below last year. We have had a short and not very sweet Second Flush," said Rajib Barooah, chairman of Assam Tea Planters' Association (ATPA).

Barooah predicted that tea output in India might reach a record of 1.13 billion kg from 1.11 billion kg last year, as monsoon this year is expected to be normal. "Exports from south India have increased in the first quarter in 2013.

Reportedly North India crop is up by 3.7 per cent between January and May this year compared to its corresponding period last year," Barooah added.

However, he said tea production across the world was surging ahead; led by Kenya and Sri Lanka, which might have an effect on prices as well.

He said last year tea prices were buoyant, so were the input costs resulting in a higher cost of production, thereby negating any substantive gain to the producers.

The rued that since 2011 the supply of gas has been inadequate and extremely irregular with very low pressure at most times, forcing the factories to close down temporarily. This interruption had a rippling effect on the plantations and the small tea growers supplying green leaves to tea factories.

"As a result of this interruption, good leaf percentages dropped due to extended plucking rounds and in turn the leaf prices also come down causing discontentment amongst the suppliers," said Barooah.

Erratic power supply has also been cited as another reason for increase in cost of production and quality deterioration at the manufacturing stage.

Read more on:   
|
|

Read More

Heavy potato crop damage in north lifts prices

Onion and potato shot up sharply across the country on supportive fundamentals. While potato crop damage in hilly areas especially in Uttarakhand and ...

Quick Links

 

Market News

Nifty hovers around 8,460; ITC, HDFC down over 1%

The 30-share Sensex was down 41 points at 28,345 and the 50-share Nifty was down 10 points at 8,466.

Lead falls by 0.3% on low demand

Speculators trimmed positions on lower demand from battery-makers in spot markets

Cardamom rises by 0.7% as demand picks up

Besides, tight stocks position in the physical market due to restricted arrivals from producing regions supported the upside

Chana gains by 0.2% on pick up in demand

Traders created fresh positions after demand picked up in the spot market, driven by ongoing wedding season

Era Infra Engineering locked at 5% lower circuit

IFCI sold 14.25 lakh shares of Era Infra at Rs 6.61 per share in a bulk deal on NSE yesterday

Back to Top