Erratic weather to trim 2014 tea output, exports.

Tea output in the country's top-producing state Assam is likely to fall by 10% in 2014 due to scanty rainfall and a sharp rise in temperatures, hitting exports of premium grade leaf from the world's biggest black tea producer, industry officials said. A drop in India's production and exports could push up global prices and boost shipments from competing countries like Ke-nya, Sri Lanka and Vietnam.

Assam produced 618 million kg tea in 2013, more than half of the country's total production of 1,200 million kg. "We have lost production since the start of the year due to extreme dry weather. There could be a 10% drop in production this year," Rajib Barooah, chairman of Assam Tea Planters' Association, said. "Higher temperatures are hitting the growth of tea bushes. There is a concern of pest infestation due to erratic weather."

In Assam and West Bengal, India's second-biggest tea producer, temperatures were hovering 2 to 5 degrees Celsius above normal, the weather department said on Tuesday. "Tea plantations badly need rainfall. Further dryness will increase crop damage," said Sujit Patra, joint secretary at the Indian Tea Association. Tea production in West Bengal could drop if adverse weather conditions prevail for next few weeks, Patra said.

From March 1 to April 23, Assam received 69% less rainfall than normal, while rainfall in West Bengal was 63% below average. The two states accounted for nearly 80% of the tea production last year. Rainfall in March and April determines production in May and June, when Indian tea gardens produce their premier second flush crop.

"Early onset of monsoon could limit the damage. But if the monsoon remains patchy as forecast, then production will suffer in the second half," said a researcher at Tea Research Association.

Source : financialexpress.com