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:   
|
|

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

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 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 Assam tea industry 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.
image

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 ...

Recommended for you

Advertisements

Quick Links

Market News

Banks, rate-sensitives drive markets ahead of RBI policy

The Sensex surges 302 points; logs first weekly gain in three weeks. The Nifty rises 95 points

Delivery-based volumes hit one-year high in March

Earlier, in March 2014, more than half, or 51%, of the total traded shares got converted into delivery before the general elections

Gold shipments into Gujarat register highest rise in last four years: GSECL

The official added that rise in import of gold is a sign that the economy is recovering slowly

FY16 begins on a firm note; Sensex ends 300 points higher

The 30-share Sensex gained 303 points to end at 28,260 and the 50-share Nifty soared 95 points to close at 8,586

Sensex gains over 300 points led by financials

Provisionally, the 30-share Sensex gained 134 points to end at 28,091 and the 50-share Nifty soared 39 points to close at 8,530

 

Back to Top