The Hindu Business Line : Tea output up 7 pc; exports down 9 pc

TEA exports declined by nine per cent during the first two months of the year, while production looked up by 7 per cent during the period as compared to the same period last year.

According to a Tea Board data, production increased to 35.6 million kg (mkg) from 33.1 mkg, with South India contributing 26.9 mkg. However, production in the south actually fell during the period to 26.9 mkg (27.7 mkg).

Tea exports from the country declined to 21.2 mkg (23.3 mkg), mainly due to fall in shipments during January. In February, exports increased to 13.9 mkg (13.3 mkg). However, the fall in shipments was in line with the decline witnessed in Bangladesh and Sri Lanka. Exports from the three countries declined to 52.1 mkg (59.8 mkg).

The fall in exports comes soon after it witnessed a rise during 2002 to 193.03 mkg from 182.59 mkg during 2001.

Globally, production has been on the rise during 2003 with the output rising by 7.8 mkg in Kenya to 56.4 mkg. Production in Sri Lanka was up a tad to 48 mkg, while Bangladesh and Malawi too have witnessed an increase in harvest.

During 2002, tea production in the country declined to 826.2 mkg from 853.7 mkg in 2001 a fall of 3.2 per cent.

Meanwhile, the controversy over the Tea (Marketing) Control Order seems to have had its effect on the total sales.

The quantity of tea sold during the first two months of the year has slid by over 40 per cent or 33.5 mkg to 47.9 mkg compared to the same period last year.The decline in sales has been mainly in January.

World-wide, too, sales have declined by nearly 25 per cent to 159.8 mkg, though sales in Kenya have shown a marginal rise. A bright spot in the mixed bag for the tea sector has been rise in the realisation of the sales. Average price has improved by Rs 11.13 a kg to Rs 59.84 during the first two months. The rise has been marked in North India, while the realisation has been up by Rs 12.95 a kg to Rs 65.17. Compared to this, realisation in South India has increased by Rs 6.27 to Rs 47.19.

The rise in the average price has been more during February. In the North, the average price increased by Rs 17.08 a kg to Rs 66.35, while in the South, it was up by Rs 9.31 to Rs 50.56.

The trend in India tea as far as the price is concerned is in contrast to the global trend. Prices in Kenya and Sri Lanka have witnessed a fall during the period. The average price declined to Rs 70.38 from Rs 71.68 in Kenya, while in the case of Sri Lanka, it has been Rs 73.80 from Rs 81.03.

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