The world’s largest bulk tea producer, McLeod Russel India, expects a higher deficit this year compared to the last.
“Last year, the year ended with a shortage of 60 million kg. If production is at the same level as last year then the deficit will increase since the Indian market adds about 35-40 million every year in consumption,” said Aditya Khaitan, managing director, McLeod Russel India.
Production in North India is expected to be at the same level as last year, while South India could be higher. In India, markets have surplus plain teas at the moment, but good teas are in short supply.
“It is likely that good teas will settle at higher prices while plainer teas might see a dip,” said Khaitan. Indian production was at 979 million kg during 2009 compared to 981 million kg during 2008. Exports from India were lower by 10 million kg despite production shortage of 65 million kg in Kenya and Sri Lanka. The cumulative deficit of the last five years is to the tune of 200 million kg.
In the first four months, weather conditions in Kenya and Sri Lanka, were conducive for tea production which is estimated to be higher by 75 million kg upto April 2010 as compared to drought heat period last year.
However, production in India was likely to be at the same level as last year.
