India, the world’s largest consumer of black tea, is heading for increased absorption of its home production, reveals an analysis of the data available with the Tea Board and traders’ organisations.

According to Tea Board data, domestic consumption was a record 856 million kg (mkg) in 2011 against 837 mkg in 2010. This increase of 19 mkg marked a growth of 2.27 per cent.

In 2010, the consumption had risen by 18 mkg over the previous year to post a growth of 2.20 per cent.

The domestic consumption had been increasing consistently at this rate over the years. Collectively, in the last decade, domestic consumption had increased from 673 mkg to 856 mkg – a growth of 27.19 per cent.

Market indications are that this trend continues in the current calendar year as well. This should take the domestic consumption to about 875 mkg in 2012. Tea Board has estimated the domestic consumption at 880 mkg for the current fiscal. This would require the country to import at least 10 mkg to meet an export target of 180 mkg as production is estimated at 1,050 mkg.

Output dips

India’s production has fallen by 20.24 mkg in the first half of current calendar over the same period of 2011. Adverse weather has continued till August. If the production falls drastically in the second half as well, India will have to import higher volume to meet the export and domestic demand.

Similarly, if the per capita consumption increases, more imports would be necessary unless exports take a matching beating. The per capita consumption rose to 718 gms in 2011 from 711 gms in 2010. It was 654 gms 10 years ago. It has been growing annually.

India imported 18.6 mkg of tea in 2011 against 20 mkg in 2010.

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