"In the first four months of the year, we have seen the drought impacting tea production significantly. The output is lower by 10 per cent this year in South India," said N Dharmaraj, President of the United Planters Association of Southern India (UPASI), the apex planters body in the region.
Karnataka, Tamil Nadu and Kerala, the tea growing regions in the South, have witnessed heat wave and drought conditions that have affected crop produce. April, which normally sees showers, has seen a heat wave affecting crop produce by over 5-6 million kg.
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Planters harvest the first tea crop in April and May, followed by the second in August and September.
"April-May is one the peak season for tea production. Whatever we lose in April-May is very difficult to make up," said Peter Mathias, former president of UPASI and a tea producer in Karnataka.
While South India, which produced 227.5 million kgs of tea in 2015 will see a dip in production this year, North India, which includes Assam and West Bengal saw a bumper production in March, but floods in Assam in April had impact in production.
"Overall, the production this year will remain as that of last year," said S Patra, Secretary of the Indian Tea Association.
The lower production in South India has resulted in increased prices for black tea, with average prices at Rs 104 a kg, as against Rs 86 per kg last year. However, he cost of production is still higher than the prices realised from the market.
The Tea Board, the Indian Tea Association and UPASI have jointly come out with a strategy paper to increase tea exports to 300 million kg and earn $4 per kg from the present $2.6 by 2025, C Paulrasu, executive director Tea Board of India said.
UPASI is hosting the seventh edition of the India International Tea Convention 2016, to be held in Nilgiris between September 22 and 24.