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Tea production in the current year is likely to see an increase of around 70 million Kg to reach a new high of 1,190 million Kg, according to Indian Tea Association (ITA). While north India production for the period of January to October 2013 has seen an increase of 76 million Kgs, south India is at par with 2012 levels for the corresponding period.
According to ITA chairman A N Singh there is productivity distortion due to erratic climatic conditions which affected the Cachar region adversely.
“Tea price realisations for the current season – from April 2013 to till date – show that (average) tea price in North India declined by around Rs 2 a kg, while South India saw an increase by around Rs 2.5 a kg,” he said.
On exports, Singh said that India would like to push its exports into Russia as the market holds huge potential. “We are sending a delegation to Russia in May. Russia is a big market and has got huge potential,” he said on the sidelines of annual general meeting of the ITA here on Saturday. India is expected to export about 216.23 million kg of tea this year compared 214.35 million kgs last year.
Russia, at point in time, was the top export market for India. However, owing quality decline coupled with severe competition from Sri Lanka led to drastic fall in Indian tea exports to Russia. Last couple of years, India has again upped its ante to realise the highly potential market of Russia and is looking to regain its spot in the market.
There is already about 17 million kgs extra which won't be used for consumption in India. So that has to be exported,” Singh added. China, Pakistan, Iran are India's top export market for tea.
Meanwhile, the pie of production by small tea growers is growing and was likely to become 50 per cent of total production by 2020, pointed out Tea Board chairman GVK Bhanu.
"Currently, share of production by small tea growers is around 30 per cent and the same will become 50 per cent of total production by 2020," the outgoing chairman said while addressing the AGM here today.
