Assam tea industry braces up for 'buoyant' 2010

Assam, the largest tea producing state of India, is headed for a better season next year, on the back of good crop and better price realisations.

If 2009 has been good for the Assam tea industry as far as production and price realisations are concerned, the next year might be even better if industry captains are to be believed.

Tea industry sources said that the indications that they were getting suggested that the good crop production and firm price realisation would continue, or even be better, in the initial months of next calendar year.

“What I see is that the initial months of next year would be even better for Assam tea industry,” said Bidyananda Barkakoty, chairman of North Eastern Tea Association (NETA).

He said that “stability in auction prices” this year was an important indication to suggest that good times would prevail next year.

All India auction prices during April-September were higher by Rs 20.42 a kg at an average price of Rs 110.05 a kg. The average price at Guwahati auctions was Rs 116.55 a kg compared to Rs 94.50 a kg during the period.

Against last year’s average price of Rs 90.32 at Guwahati auction centre, it was Rs 109.19 till October this year, informed Jayanta Kakaty, secretary of GTAC. He said that the highest price even had touched Rs 120 this year.

He said that, generally there is always a drop in quality during the Durga Puja festival and a subsequent drop in auction prices. But this year, the auction prices were very stable. The industry is optimistic that price realisation would be firm till the end of the year.

Though the Assam tea industry had seen decline in crop production till May due to prolonged dry weather condition, it bounced back and has now overcome the shortfall.

Assam production during January-September was 359.739 million kg, higher by 2.8 million kg though all-India production was lower by about 10 million kg. Till May, the Assam tea industry had posted a total shortfall of around 9 million kgs, with the worst being the month of April.

Industry sources said that the crop production in October, for which the figures were not yet out, was good.

This calendar year, it appears, might surpass 2008, which was one of the best years for the Assam tea industry since 1999.