Tea deficit to rise on bad weather

The tea season in India, likely to close in the next three weeks, will clock in a deficit in excess of 100 million kg.

Till end of September Indian tea production was down by 10 million kg. While South India maintained its 2009 levels, erratic weather conditions in Assam and North Bengal affected the crop. To make things worse, the helipeltis pest attack during the second flush added to the crop loss.

“End-October figures were down and in November also the figues were low. Now, the weather has gone dry. So, I think there will be a shortage of around 25 million kg,” Aditya Khaitan, managing director of the world’s largest bulk tea producer, McLeod Russel (India) said.

With the deficit at the beginning of the year, and the annual consumption growth rate of three per cent, the shortage in the system is expected to be more than 100 million kg.

“We expect prices to increase now,” Khaitan said. Industry representatives said that prices were likely to be higher by Rs 8-10 a kg.

According to ITA projections for 2010, production would be at 957 million kg, against 979 million kg in 2009. Consumption was, however, expected to be at 870 million kg compared to 850 million kg in 2009. The figures indicate that the next season would open with huge deficit.