World Tea Output Down In Jan-Feb

World production of tea has recorded a decline in the first two months of 2002. The declining trend was witnessed in all major tea-producing countries, according to Percy Siganporia, deputy managing director, Tata Tea.

In India, the total estimated production in January-February was 32.70 million kg as compared to 37 million kg during the same period last year.

Similar trends were observed in other tea-producing countries like Kenya, Sri Lanka, Indonesia and Malawi. In Kenya alone, production fell by 5.70 million kg. The worldwide production of tea in January-February was 158 million kg, down 14.8 million kg from 172.80 million kg in 2001.

However, this does not send a positive signal on the price level in India, according to Siganporia. A marginal increase in the price level has taken place in Sri Lanka, but the Indian market is tiding over a difficult situation. The situation is no different in the export market.

Globally, tea prices crashed last year because of oversupply. The budget proposal to cut the excise duty on tea by Re 1 has so far failed to have any positive impact on the market. The industry has been demanding withdrawal of the Rs 2 per kg excise duty.

"The proposal will kill the industry softly," Siganporia said.

He said the initial response to the newly introduced Tetley Tea had been promising and Tata Tea had already introduced Tetley Tea vending machines in Mumbai. The company will soon be introducing vending machines in other major cities too.

Tata Tea has a presence in over 35 countries. With 55 tea estates in India and an area of 26,500 hectares under cultivation, Tata Tea produces over 60 million kg of tea, accounting for 21 per cent of the Indian packaged market.