Tea auction prices firm despite good output

According to the Indian Tea Association (ITA), in January to November, the production was 1,066 million kg. It was 1,126 million kg for January to December a year ago, higher by 75 million kg. The production till November was higher 75 million kg compared to a year ago.

The Tea Board of India had revised its 2011 figures to include bought-leaf factories. Bought-leaf factories are small growers who source two-thirds of the green leaves processed in their factories from other growers.

"If the trend continues, we could create a new record in production. However, during December, the ITA members in North India recorded some crop loss, but the overall figures, including South India will have to be accounted for," an industry representative said.

The North India production till November was higher by 70.51 million kg, though the November crop was down by 5.88 million kg. South India recorded 4.55 million kg high production till November. The overall tea production across the world was higher by 152 million kg.

Despite the high production, auction prices remained firm, possibly due to the shortfall in the system. The season started with a pipeline deficit of about 100 million kg.

The average all-India auction price was Rs 128.97 a kg, higher by Rs 8.22 a kg. April-November prices were at Rs 131.61 a kg in 2013-14, higher by Rs 1.76 a kg. Darjeeling tea recorded lower prices during January-November at Rs 324.51 a kg compared to Rs 372.43 a kg.

India's exports till September were higher by 6.7 million kg while imports were higher by 1.33 million kg.