Tea Output Up 16pc in March; Exports Down By 49 pc.

India''s tea production increased by nearly 16 per cent to 56.73 million kg in March as against 49 million kg in the same month last year on account of higher output in Assam, according to Tea Board data released today.

In Assam, the production rose to 23.66 million kg in March as against 14.78 million kg in the year-ago period, but the output in South India and West Bengal declined.

Tea exports, however, declined by nearly half in March this year to 11.9 million kg from 23.49 million kg in March 2010, the data showed.

During the first quarter of 2011, exports fell to 39.62 million kg from 53.99 million kg in the year-ago period.

According to industry experts, the slump in exports has been continuing from the end of the last year due to subdued demand from major importing countries and payment problems.

"The exports have been down since the end of last year due to subdued overseas demand and payment problems from Iran and Pakistan due to which exporters have been reluctant to go for contracts," Indian Tea Association Joint Secretary Sujit Patra told PTI.

Tea exports in North India have been down following the slump from last year but they will pick up from June-July, he added.

North India exported 6.70 million kg of tea in March 2011 as compared to 13.17 million kg in the year-ago period.

Exports of the brew from South India have also gone down by almost half to 5.19 million kg in the period under review as against 10.32 million kg in the same period last year.

"Tea exports from South India have been down in March this year due to recent disturbances in West Asia and North Africa, which have impacted the shipments," United Planters Association of South India (UPASI) Commodities Head R Sanjith said.

South Indian tea is auctioned from three centres: Kunoor, Coimbatore and Cochin. Coimbatore and Kunoor usually handle overseas demands but this year due to the disturbances in West Asia and North Africa, the auctions did not handle the amount of trade as was seen in the last year, he added.

During January-March quarter of 2011 calendar year, the tea output of India-- the world''s second largest producer-- went up marginally to 94.39 million kg from 94.06 million kg in the corresponding period of 2010.

India, the second biggest producer of tea in the world, accounts for about 28 per cent of global tea production and around 14 per cent of trade. There are about 1,600 tea estates in India. The industry employs more than two million people.

Source : in.finance.yahoo.com