)
The Indian tea industry is likely to close the season at prices lower than last year’s.
Representatives said prices of Assam teas had slipped by Rs 4-5 a kg, and indications were the season would close at those levels. The main reason was a higher crop due to better weather conditions. If it happens, then it would be a deviation after many years. Since 2006, north India has closed the season at prices higher than the previous year.
“We are making up for the crop lost in 2012. So far, Assam would be higher by 15-20 million kg. The season will probably end at those levels because we are already in October,” said Kamal Kishore Baheti, wholetime director or McLeod Russel, the world’s largest bulk tea producer.
According to the last figures released by the Indian Tea Association (ITA), till July, the production in north India stood at 414.62 million kg, vis-à-vis 375.02 million kg in 2012.
The picture in South India, however, is quite different. Till July, South India clocked in a production of 132.2 million kg, down by almost six million kg. “Till date, we have lost almost 10 million kg compared to last year and this is the fifth year of lower production for South India. Naturally, prices are higher by about Rs 10-12 a kg,” said Ullas Menon, secretary general, the United Planters’ Association of Southern India.
However, despite south India clocking in a much higher increase than the dip in North India prices, the all-India figures would be lower than last year, as the north accounts for around 75 per cent of total tea production.
The drop in prices appears to have happened in the April-July period. The ITA-released data show auction prices of north India tea during January-July was at Rs 142.57 a kg, compared with Rs 129.41 a kg a year ago. However, the April-July figures show a drop of around Rs 3 a kg. All-India figures during April-July were higher by around Rs 4 kg. In 2010, too, the industry average for all-India was lower than 2009, but it was led by a sharp drop in South India tea prices.
