ITA predicts lower tea production in 2010

India Tea Association (ITA), the apex body of tea planters, has predicted a lower production in 2010 at 957 million kg, as compared to 979 million kg in 2009.

In the status report 'Indian Tea Scenario' for 2010, ITA said that domestic consumption in the current year would be around 870 million kg, higher by 20 million kg over 2009.

The report said that in view of the projected mismatch between supply and demand, prices would be higher.

The ITA paper said that going by the current demand, tea imports would be in the region of 20 million kg for this year. 

ITA said that in view of the two proposed free-trade agreements (FTAs) with Sri Lanka and the Asean nations, it was feared that inferior and sub-standard tea would enter the Indian market due to concessional duty. 

Under such a scenario, ITA demanded that the prevailing rate of 100 per cent safeguard duty should be kept to protect the domestic industry.

On the export projections, ITA said that it would be in the region of 190 million kg, as compared to 198 million kg in 2009.