Tea deficit to widen on pest attack, rain

The tea production in Assam and North Bengal declined by 20 million kg during April-August.

Overall, however, production in India stood at 585 million kg, a decline of 10 million kg. The overall figures were offset by south India, which registered an increase of 10 million kg, according to figures released by the Indian Tea Association (ITA).

The crop in north Bengal and Assam suffered this year on account of heavy rain and pest attack. “The overall deficit in the country is going to widen,” industry sources said.

The consumption in the country grows at about 30-35 million kg every year. With the deficit at the beginning of the season, India is likely to face a shortfall of about 60-70 million kg. All-India auction prices were lower by Rs 4.66 a kg at Rs 93.98 a kg during January-July.

Prices for Assam and North Bengal rose Rs 1.84 a kg at Rs 108.70 a kg. Prices in south India were lower by Rs 14.30 a kg at Rs 88.50 a kg.

Meanwhile, the country's tea imports during the January-July period of the current year dipped by 15 per cent to 11.2 million kg, according to ITA data. It had imported 13.17 million kg tea during the same period last year, it said.

India, the world's largest consumer of tea, imports tea only to re-export to other countries. The dip in imports thus signals less re-exports.

During the first seven months of the year, 3.47 million kg tea was imported from Nepal, the maximum, and lowest import was registered from Sri Lanka at 0.21 million kg. Vietnam and Kenya were the two leading exporters of tea to India during the January-July period. While Vietanam docked 1.96 million kg, the African country had shipped 1.54 million kg to India.

Though the quantity dipped, average price of imported tea went up to Rs 88.15 a kg during the January-July period of the current year from Rs 83.93 a kg in the year-ago period. Tea production in India stood at 979 million kg last year.