Kochi, Jan 8 The country's tea production grew marginally in November. With the onset of the winter dormancy, North Indian plantations reported a 2.45 million kg shortfall that was made up by a growth of 3.33 million kg in the South. Production shortfalls were reported by plantations in West Bengal and Terai regions, while good harvests were reported from Tamil Nadu and Karnataka.
Nominal fall
Tea production inched up to 90.53 million kg (89.65 million kg) during November. However, production till November was marginally lower at 920.89 million kg (922.20 million kg). Sources in the United Planters Association of Southern India (Upasi) said that the year might close with a nominal fall in production. They said that winter conditions had set in late over South Indian plantations and the surge in November production was a welcome surprise.
Scattered rains during early December resulted in dissipating the winter dormancy and the production was not expected to dip much in December either. North Indian production could continue to be low if the winter dormancy persists in the coming months as well. Fog like conditions could hamper the January crop in South India as well.
Overall shipments
The country exported substantially more tea in November at 19.27 million kg (15.61 million kg). Though the unit value realisation has dipped marginally, total export realisation for the month grew to Rs 271 crore (Rs 226 crore). However, there has been a slight slippage in export volumes during the first eight months of the current fiscal to 130.79 million kg over 135.91 million kg last year. However, a sharp surge in unit value have bolstered gross realisations to Rs 1827 crore (Rs 1683 crore).
Global production is expected to remain tight till final figures from major producing countries such as Kenya and Sri Lanka are out. Sources in the trade said a clear indication of the global production would emerge only once the December figures for Sri Lanka and Kenya are known. With Sri Lanka reporting a production shortfall of 35.41 million kg and Kenya with 29.81 million kg, the global markets continued to rule firm.
Prices easE
However, sources in Upasi pointed out that tea prices have begun to ease marginally in domestic auctions during November and December. The production figures from Sri Lanka and Kenya would determine which direction global prices would take in the coming months.
Source : Business Line