Tea production, exports likely to be flat this year.

Kolkata: Tea production in India is likely to remain flat this year owing to adverse weather condition and pest attacks specially in the Assam region, Tea Board said.

However, Tea Board chairman Basudeb Banerjee feels that there is no reason to press the panic button yet and that even if there is any shortage it will be marginal.

“Production has been hit by adverse weather conditions this year apart from pest attacks. For the season it was catastrophic but the whole year would provide some cushion,” Banerjee said at a press conference organised by National Tea Research Association.

According to industry estimates, north India witnessed a decline of almost 3 million kg (mkg) in May, while June has been worst for the industry. Gardens in West Bengal and Assam have registered maximum amount of crop loss.

Tea Board statistics show that tea production during June has declined by 13 mkg in Assam and 2 mkg in West Bengal – resulting in an overall decline of over 15 mkg in north India.

Although there has actually been an increase of exports during January to June period, the outlook for the entire year is not very encouraging, Banerjee said.

Indian tea exports have registered an increase of 9 mkgs during January to June 2010 against last year. While exports from North India have declined by 2 mkgs, average price for tea has increased by Rs 7 per kg.

Source : financialexpress.com/news