PRODUCTION -- 12 :

INDIA HEADING FOR RECORD TEA PRODUCTION

BY P S SUNDAR

                   India is heading for yet another record in tea production this year with output so far rising above last year’s level which is a record until now.

“Tea Board has announced production data till June.  The compilation shows that India produced 398.84 million kg (mkg) in the first half of current year compared to 388.71 mkg in same months of 2014”, Rajesh Gupta, compiler of annual ‘Global Tea Digest’ told me.

This increase of 10.13 mkg marked a growth of 2.61 per cent.

North India, which was producing a lower cop due to harsh winter conditions early this year, has recovered.   In the first half, it produced 7.54 mkg more to reach 275.22 mkg.   This was despite Assam, the country’s largest tea producing state, posting a marginal decline of 0.13 mkg to dip to 162.55 mkg.

South India produced 2.59 mkg more to reach 123.62 mkg.   Tamil Nadu produced 0.82 mkg more to record 85.49 mkg.   Kerala’s output rose by 1.83 mkg to soar to 34.75 mkg.

For the first time in Indian tea history, production crossed 1,000 million kg mark in 2011 and reached 1116 mkg.   The next year, it soared to 1126 mkg.  It further rose to 1200 mkg in 2013 and 1207 mkg in 2014.

Based on higher production so far, industry sources expect the production in 2015 to be around a record 1215 mkg.

(response can also be sent to: pssundar.coonor@gmail.com)

COONOOR AUCTION -- 7 ::

CTTA TURNOVER FALLS AGAIN

BY P S SUNDAR

                The cumulative turnover at Coonoor Tea Trade Association (CTTA) auctions, which had shown rising trends over 2014 two months, has once again fallen below last year by July end.

Till April end, players at CTTA auction had earned less compared to 2014 but in May and June end, they heaved a sigh of relief with earnings rising over 2014.

The relief was short-lived.   Although the volume sold has risen over last year by 20 lakh kg, that was possible only by sacrificing prices by ` 5 per kg.

Till July, 31 auctions had been held.  Since about 25 per cent of the volume offered had remained unsold in most auctions, producers reduced the asking price to encourage consumption.   This resulted in average price to fall to ` 72.24 per kg from ` 77.20.  

The lower price helped higher absorption with the volume sold rising to 3.58 crore kg from 3.38 crore kg.

Nevertheless, the overall turnover dropped to ` 258.62 crore from ` 260.94 crore. 

This fall of ` 2.32 crore marked a marginal decline of 0.89 per cent.

However, Pakistan, the major buyer of Nilgiri teas, has not been showing interest in the last couple of weeks.

The abrasion in Indo-Pak border close to Independence Day celebrations has upset trade sentiment.   Last week, there was no mentionable purchase for Pakistan.

“On Thursday also, there was no active purchase for Pakistan.  We are taking a ‘wait and watch’ approach before investing”, an exporter told me. 

(response can also be sent to: pssundar.coonoor@gmail.com)

FOR THE RECORD -- 10: 

HAPPENINGS THAT MAKE INTERESTING READING

BY P S SUNDAR

(article in Apr-June 2015 issue of Contemporary Tea Time)

(response can also be sent to: pssundar.coonoor@gmail.com)