Tea output in south India up 12.7%

Tea production in south India for January-July 2008 is up by 15.9 million kg (an increase of 12.70 per cent) compared with the numbers in the corresponding period last year. Production is estimated at 141 million kg for FY09 compared with 125.1 million kg in the year-ago period, according to the United Planters’ Association of South India (Upasi) study. The industry cites ideal weather condition for the higher production.

All-India tea production for January-July 2008 was 476.6 million kg, 16.8 million kg higher than the output in the same period last year. The north Indian tea production was 335.6 million kg, 0.9 million kg higher than the last year’s.

On the export front, the Upasi study indicated that shipments from India increased by 16.7 million kg to touch 105.6 million kg during the period under review, as against 88.9 million kg achieved in the same period last year. Moreover, the export value realisation and the unit price were also higher by Rs 186.1 crore and Rs 1.42 a kg respectively.

According to the Upasi analysis, exports from tea-producing countries suggest the pre-eminence of Vietnam in the global market in a short span of time.

Vietnam’s exports increased from 27 million kg in 1997 to 114.5 million kg in 2007, registering an annual growth of 18.08 per cent. If Vietnam’s exports continue to grow at this pace, it will surpass India as the fourth largest tea exporter in the near future, Upasi cautioned.

Tea imports during January-May 2008 were higher by 34.7 per cent and the unit value realisation was lower by 5.1 per cent compared with that in the corresponding period of 2007.