KOCHI: The tea prospects are looking bleak with the production and export continuing its downward spiral.
The five month figures ended May 2009 showed a decline in both the production and export compared with the same period in the previous year. The production has fallen by almost 25 million kg while the export is down by13 million kg.
Both the South Indian and North Indian tea production have recorded a shortfall. The all-India tea production touched 215 million kg. North India with 130 million kg and South India with 85 million kg have shown almost equal degree of fall. The industry sources attributed adverse weather conditions in the early part of the year for the slump in production.
The export seems to have kept pace with the decreasing production. The exports for the five month period stood at 60 million kg as against 73 million kg in the corresponding period of the previous year.
According to leading exporter Krishnakumar J Shah, the comparatively high price of Indian tea has contributed to lower exports. The sluggish production added to the woes of the Indian tea exporters. In the last few months, Indian tea price was averaging around Rs 90 per kg.
However, the exports have started picking up from June, Mr Shah said. ``Exports to Pakistan, Iraq, Russia and Egypt have started gaining momentum,'' he said. The prices have also fallen to a level of Rs 85 per kg in the last few weeks, which augur well for exports.
The production and exports are, however, are expected to fall short of last year's level even if it increases in the coming months. Last year, Indian tea production touched 980 million kg while exports reached 196 million kg.
Source : The Economic Times