Tea production declines 10% in Jan-May

India has recorded a 10 per cent drop in tea production during January to May this year, according to figures released by the Indian Tea Association (ITA).

Production during the period stood at 215.8 million kg, compared with 240.2 million kg in the same period last year, a decrease of 24.4 million kg. Aditya Khaitan, chairman, ITA, said the annual consumption growth was 30 million kg, which implied a shortfall of more than 50 million kg. Moreover, the season started with a deficit of 25 million kg. Khaitan, however, said the peak period between June and October would be crucial. Tea production would start coming down after October and would be nil from December .

The season started on a buoyant note with a price rise of Rs 20-25 a kg. The industry expects the season-end price to be Rs 25-30 higher than last year.

The all-India auction price during the period was Rs 142.1 a kg, compared with Rs 69.14 a kg in the same period last year, an increase of 105 per cent.

The price appreciation happened was despite lower exports, which stood at 60 million kg during the period compared with 73.7 million kg in the previous year.

Among other major tea-producing countries, production in Sri Lanka was down by 38.5 million kg, while in Kenya, the drop was 20.7 million kg. Overall global production was lower by 85.1 million kg. World production till May stood at 538.4 million kg compared with 623.5 million kg in the previous year. Industry sources said Sri Lanka continued to lose crop due to adverse weather conditions.