Tea producers do not see major crop loss this year

India's total annual tea production is estimated at 1,100 million kgs, and the crop loss this year would be between 1-2%

Allaying fears of the drought situation this year in north India after a weak monsoon forecast, major tea producers now are saying there will not be a major loss to crop. "Due to lack of rains in north India, there will be crop loss estimated to be around the region at 15 to 20 million kgs," C K Dhanuka, executive chairman of city-based Dunseri Petrochem and Tea, told PTI.

Dhanuka said India's total annual tea production is estimated at 1,100 million kgs, and the crop loss this year would be between one to two per cent.

"That is not a major loss", he said. When asked about its impact on prices, he said "the level would not rise because of this." "Whatever price rise will take place, it will be due to inflation," Dhanuka said. Dhunseri has 11 gardens in Assam and produces 11 million kgs per year. Managing Director & CEO of Goodricke A N Singh echoed the same sentiments.

"There will be a crop loss of around 15 to 20 million kilograms due to poor rains in north Bengal. What impact will it have on prices is difficult to say. But it is unlikely to have any major impact," Singh said. McLeod Russel, a major bulk producer of tea, is optimistic that the initial crop loss might be recovered in later part of the year if the rains are satisfactory. "For the month of April, the estimated crop loss is 30 per cent. But production is generally low during April and May," K Baheti, wholetime director of McLeod Russel, said.

He said that the major production months are June, July, August and September. "If there are good rains during these four months, then it is expected the loss will be recovered," he said. Regarding impact on the price level, he said that already prices are strong. "It is too early to say anything on the price level," he added.