The Indian Tea Association (ITA) status paper for 2003 has painted a grim picture of the industry as it grapples with a bumper crop in a year plagued by a sharp drop in exports.
According to ITA, the year would see production growth of 38 million kg at 864 million kg and a decline in exports by 12 million kg to 186 million kg. This would put pressure on prices.
During January-June this year, production was up 30 million kg while exports were down 22.1 million kg. Exports earnings were also lower by Rs 145.16 crore.
Exports declined on account of loss of the Iraq market of 13.89 million kg till May. Exports to Russia, the largest market for Indian tea industry, were also down by 3.81 million kg.
Moreover, the rate of growth in domestic consumption was also lower at 1.8 per cent from the earlier projected 3 per cent.
ITA also cautioned that according to market information, a large amount of CTC teas had been carried forward to 2003.
To counter the situation, ITA recommended that the industry must make all efforts to increase exports, particularly of orthodox tea.
