The Hindu : Business : Poor rains cast shadow over tea crop

Online edition of India's National Newspaper
Thursday, May 11, 2006

Business

Business

Poor rains cast shadow over tea crop

Special Correspondent

Industry reports crop losses in April

KOLKATA: The undercurrents of joy that had begun to run through the Indian tea industry in the wake of a lower tea crop from Kenya in 2005, its major rival in the international market, has now begun to ebb, amid reports of crop losses in the tea gardens of North India which contributes nearly 75 per cent of the total output.

At a review meeting earlier this week, members of the Indian Tea Association (ITA), the industry apex body, reported crop losses in April barring the Upper Assam area comprising Doomdooma and Dibrugarh, where the crop has either inched up or been equal to the 2005-level. North of the Brahmaputra river, areas such as Lakhimpur, Mongoldoi and others have recorded deficient rainfall. In sub-Himalayan West Bengal, the output in Dooars is heavily down, according to available reports, although Darjeeling output is up in March but was hit in April.

ITA sources said that production went according to plans during January and February and 41 member-companies reported a two million kg increase in production. However, in some regions, poor rainfall affected production from end-March, the month the tea-season opens. According to Tea Board figures, regions such as Cachar suffered a 2.3 million kg crop loss in a single month, leading to a drop of five lakh kg for Assam which accounted for 50 per cent of India's output. Some estates like Washabarie in the Dooars region suffered a 58 per cent drop in output in March.

The scene in the gardens in the South is not too different. Enquiries with the United Planters Association of Southern India revealed that insufficient rains had impacted the crop in February, wiping off the gains made in January. With the arrival of rain in March, production increased by 1.2 million tonnes, especially in the Nilgiris in Tamil Nadu which accounted for the best flavours as well as the volumes. In April, production equalled that of the same month in 2005 while the output in May seems to be on course.

Tea Board estimates for South India showed an eight-lakh kg drop in output between January and March 2006. Figures just released showed that India produced 930.85 million kg of tea in 2005-06 (higher by 24 million kg). Of this, 703.9 million kg was from North India and 226.9 million kg from South India.

Sources said that although it was too early to prognosticate for the year and recoveries could not be ruled out, these losses might have to be factored in while conducting the exercise on 2006 projections.

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