The Hindu Business Line : S. India tea output seen lower in April on inadequate showers

Kochi, May 8 Insufficient summer rains so far this year is likely to keep the South Indian tea production low even in April like the first three months of the current year.

The January-March output in south India dropped by 8.156 million kg to 41.34 mkg from 49.49 mkg in the same period in 2008. The March output alone dropped by 1.86 mkg to 17.69 mkg against 19.55 mkg in March 2008, Upasi sources told Business Line on Thursday.

Fall in exports

There has been a significant fall in the exports also during the first three months of 2009 at the all-India level. The drop has been significant in exports from North India which fell to 38.89 mkg from 50.94 mkg in the corresponding period in 2008. The shipments from South India dropped to 18.95 mkg from 20.65 mkg.

Upasi sources said there had not been a sharp fall in the global consumption. But, the companies importing the teas, are said to be buying only what is needed to meet the immediate requirements, due to financial crunch.

The prices continued to remain at higher levels. The average unit value realised for south Indian teas was Rs 101.43 a kg during Janury-March 2009 as against Rs 79.74 in the same period last year.

Similarly, the unit value for north Indian teas also was at 148.38 a kg (Rs 109.10 a kg).

Prices in the overseas markets continued to rule high on tight supply position in most of the producing countries such as Kenya and Sri Lanka. Sri Lankan production is said to be lower by 50 per cent of its normal production.

The prices are, therefore, likely to remain firm in the coming days, industry sources told Business Line. The south Indian average tea prices during January- February showed significant rise.

The average price of CTC shot up to Rs 75.05 a kg from Rs 54.62 while that of orthodox incrased to Rs 75.91 from Rs 61.10 a kg in January-February 2008.

Consistency in the prices with an upward swing both in India and overseas indicates that there is no fall in the consumption pattern of the people and there is a shortfall in supply from most of the producing countries, they said.

This phenomenon has pushed up the prices and it is substantiated by the all India average unit value realised in March 2009 for exports.

The average value stood at Rs 133.40 a kg, where as it was Rs 98.78 a kg in the same month last year.

The short fall in south Indian production has pushed up the prices of leaf bought from small growers in the high ranges of Kerala. The farmers are said to be paid Rs 10-12 for a kg of green leaf, market sources claimed.

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