Tea faces rough weather

The tea production in the country declined in 2007 due to erratic weather conditions in north and south India.

“The crop scenario is not looking too bright in India. The supply line is constrained and this will impact the prices not only in the international market, but also in India,” said Aditya Khaitan, chairman, Indian Tea Association (ITA), while speaking at the association’s annual general meeting.

CUPPA OF SORROW

The global tea market has been slowing down since 2007

 

Kenya’s crop production dipped by over 40 million kgs in the first half of 2008

 

The price of tea increased by only Rs 8.43 a kg in India

 

The global tea market has been slowing down since 2007, he added. Kenya, a major crush, tear and curl (CTC) tea producing country, reported that its crop production dipped substantially by over 40 million kgs in the first half of 2008.

The average auction prices collated by ITA from major international auction centres showed that the price increase from January to May 2008 was 61 cents and 76 SL Rs in Kenya and Sri Lanka respectively, while it was only around Rs 8.43 a kg in India.

Exports have been an area of concern. ITA has requested the central government to include tea in the Vishesh Krishi and Gram Udyog Yojana schemes, market-specific assistance scheme and scheme for the development of export infrastructure, respectively.

Basudeb Banerjee, chairman, Tea Board of India said the producing countries should come together and form an international producers’ forum. The tea estates could get additional revenues from carbon credits and land utilization, he added.

Banerjee lauded the Assam government for allowing the use of excess tea estate land for non-tea purposes and asked the West Bengal government to follow suit. Assam chief minister, Tarun Gogoi, said the Indian tea industry would have to compete with the world. “If we can do so well in other areas, why not tea,” he said.