S. India tea output drags in Nov; exports down

Kochi: Tea production dropped 13.23 million kg (mkg) to 907.65 mkg during January-November 2010, despite an uptick in production from North Indian plantations. November witnessed an increase in production from North India, while South Indian plantations lagged behind.

The prime cause for the shortfall in tea production was the slippages in North Indian production during the earlier part of the year. Unseasonal rains and persistent disease attacks had brought down production from North Indian plantations by 15.64 mkg to 682.71 mkg. Some of this shortfall was made up by a spurt in South Indian production during the first 11 months of 2010.

But the growth trends in South India seem to have been arrested during November which witnessed a fall by 3.27 mkg to 23.10 mkg even while North Indian production recovered and posted an increase of 6.66 mkg to 70.82 mkg.

It was not just rain that brought down South Indian tea production but also low sunshine and overcast conditions that prevailed in tea growing areas in the region, sources in the United Planters Association of Southern India (UPASI) said.

Despite an early head-start and an increase in production, the year is expected to end neutral for South Indian plantations, at around the same level as last year, the UPASI sources said.

Tea prices, which had fallen sharply during the four month April-July period, have begun to recover. The fall was primarily due to substantial growth in production during the period and global erosion in tea prices, sources at the UPASI said.

However, prices have begun to make a recovery during the last couple of months and the trend is expected to continue. But prices are still ruling Rs. 14-15 a kg lower than last year.

The recovery in prices has helped the export sector where demand is beginning to re-emerge. However, tea exports were lower in volume and value for November as well as during January-November 2010.

While export volumes fell to 124.55 mkg (132.92 mkg) during January-November 2010, unit value realisation fell to Rs. 131.89 a kg as against Rs. 144.88 a kg last year. While north Indian prices have been able to recoup some of the losses made during the early part of the year, South Indian prices remained below the levels of last year.

India’s tea prices drop 2.33% in 2010

Coonoor: Prices of teas sold through the auction centres of the country fell 2.33 per cent in 2010 compared to 2009, reveals an analysis of the market reports and the latest information available with the Tea Board.

Till November, for which official data is available, prices at the country’s auction centres averaged Rs. 102.77 a kg against Rs. 105.22 in 2009. This decline of Rs. 2.45 a kg posted a fall of 2.33 per cent.

Prices declined sharply in South Indian auction centres while they posted an increase in the North.

In the North, prices rose 2.91 per cent to average Rs. 117.94 a kg — Rs. 3.34 more than 2009. But volume sold declined by 6.35 million kg (mkg) to total 321.95 mkg as the asking price was more.

Prices increased in all the auction centres in the North. Kolkata auctions fetched the country’s highest average price of Rs. 130.37 a kg (in 2009: Rs 124.01), followed by Guwahati at Rs. 111.67 (Rs. 110.56) and Siliguri at Rs. 103.96 (Rs 103.48).

In the South, prices declined as much as 17.07 per cent to average Rs. 67.41 a kg – a whopping fall of Rs. 13.88 over 2009.