Tea crop to fall short by 6.5mn kg

Official crop figures released by the Tea Board upto March 2004 indicate an all-India shortfall of 6.56 million kg. The mood in the industry was upbeat as exports rose 7.2 million kg. This implied prices would pick up in the coming days as the season started with virtually no carryforward.

Arrivals of teas at the primary auction centres in north India showed a sharp decline following lower harvests. In view of the stock position, auctioneers felt prices should appreciate in coming weeks.

CTC tea arrivals declined 0.75 million kg in the month of April. Prices were Rs 6.94 per kg higher than the corresponding period of 2003. For auctions in May, arrivals fell further by 5.6 million kg against last year.

However, some growers felt the real picture would emerge only in August after production peaked in June-July.

"The industry would face the real test only around that time and if prices remain firm then, the industry would come out of recession after six straight years of downtrend" said an industry source.