Tea production at record high in 2011, says ITA

The tea industry ended 2011 with the highest ever production at 988 million kg, an increase of 23 per cent over last year

According to figures released by the Indian Tea Association (ITA), output was up 21.92 million kg to 988 million kg till December, as against 966 million kg last year. The estimated year-end figure, however, fell short of tea players’ expectations of achieving production of one billion kg.

“Erratic weather brought the production figures down. It was extremely dry and October-November was too cold, which affected the crop,” an ITA official said.

Till October, the cumulative crop increase was at 33 million kg, but December saw a fall of seven million kg.

Last year’s production figures also managed to break a three-year downward trend. In 2007, the industry had recorded 986 million kg, the earlier record. In the ensuing years, the crop fell steadily to 981 million kg in 2008 to 979 million kg in 2009, and 966 million kg in 2010.

Despite high production, the industry expects stocks to be exhausted by February-end. Exports till December were 186.73 million kg, marginally lower from 193.29 million kg last year. The unit price was, however, higher from Rs 134.26 a kg last year to Rs 147.80 a kg now.

The cumulative deficit for the year is expected to be 45-50 million kg, given that India’s consumption increases by 30 million kg every year.