Tea output down 12% in June; export falls 15% .

The country's tea production in June slipped close to 12 per cent to 104.03 million kg.

The lower production was attributed to lower rainfall, decreased soil humidity and increased pest attack in some of the major tea growing areas of the country, especially in the North-East.

While most of the country received normal to good rainfall till August, the tea-growing areas of North-East reportedly received deficit rainfall.

S. India contribution

Although North Indian production, including from Assam and West Bengal, was significantly down, the slight increase in South Indian production was unable to make up for the shortfall.

Increased production from Tamil Nadu accounted for the spurt in South Indian production.

Production for the first three months of the current fiscal was, however, up at 338.96 million kg (333.89 million kg).

The shortfall in production from the North Indian plantations persisted into June.

The biggest production losses were reported from Assam, especially from the Assam valley plantations.

However, increased production from South Indian plantations during the first three months was not only able to make up the deficit but also enabled the country to report an overall production increase.

Highest production increases were reported from Tamil Nadu plantations.

Tea export was down in both volume and value in June.

The country's exports fell close to 15 per cent to 12.76 million kg in June 2010, as against 14.95 million tonnes in June last year.

The fall in value realisation was even sharper at 21.5 per cent to Rs 166.96 crore as against Rs 213 crore.

The higher fall in value realisation was also on account of lower unit value realisation. Unit value realisation for tea fell to Rs 130.84 per kg as against Rs 142.46 per kg last year.

While there was an increase in the value of high-quality teas exported from North India, significant fall in value of bulk tea exports from South India eroded the country's unit value realisation.

Unit value of North Indian exports was twice that of South Indian tea exports in June.

pest attack impact

Reuters reports: A pest attack of helopeltis adversely affected tea gardens in the Assam.

“The fall in output is higher than industry's expectations. It was expecting 8-10 per cent fall in production,” said an official of the Calcutta Tea Traders' Association.

Despite a drop in June production, the country's tea output in January–June stood at 339 million kg, up 1.5 per cent on year due to higher crop in January–April.

The Tea Board chairman, Mr Basudeb Banerjee, told Reuters last month that the country's tea output in 2010 is likely to fall below 2009 level.

“Pest attack is now under control, but it had caused damage in July as well. We are expecting lower output in July,” said a senior Board official, who declined to be named.

India exports CTC (crush–tear–curl) variety of tea, mainly to Egypt, Pakistan and the UK, and the premium orthodox variety of tea to Iraq, Iran and Russia.

In January–June, the country's tea exports stood at 83.9 million kg, 12.6 higher on year, the statement said.

However, average realisation during the period fell by 6.4 per cent to Rs 123.48 per kg.

Tea prices in India have been rising for the past one month due to lower crop in June.

Source : thehindubusinessline.com