PRODUCTION -- 22:

GLOBAL BLACK TEA OUTPUT DOWN 19%

BY P S SUNDAR

Adverse weather in many producing countries is taking a toll on global black tea output.

“Our compilation of the latest official data from different countries shows that the world black tea production so far this year has fallen to 104.01 million kg (mkg) from 127.75 mkg in the same period of 2016”, Rajesh Gupta, compiler of annual Global Tea Digest, told me.

This shortfall of 23.74 mkg marked a decline of 18.59 per cent. 

The shortfall has happened because of lower output in two major producing countries – Kenya and Sri Lanka.   Kenya lost as much as 17.32 mkg to produce 32.99 mkg while Sri Lanka lost 8.27 mkg to produce 39.71 mkg.

Prolonged dryness has affected harvest in these countries. 

India has traditionally been the largest producer of black tea in the world but as of now, India ranks third after Kenya and Sri Lanka.

“India’s production has increased marginally by 1.04 mkg to total 18.99 mkg.  Here, North India produced 2.459 mkg more to reach 5.86 mkg while South India lost 1.45 mkg to dip to 13.13 mkg”, Gupta noted.  

The global situation is expected to change once North East India recovers from winter and takes up production, say by April.  Thereupon, India is slated to top the world black tea production table as in the past.

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

PRODUCTION -- 21:

NILGIRI TEA SECTOR LOOKING FOR BETTER CROP IN APRIL

P S SUNDAR

                   The drought-hit tea plantations in the Nilgiris are looking forward to better crop by mid-April, thanks to the recent showers.

No agro-zone of the district reported any rainfall during February.  Then first two weeks of March were also dry.   Last week, some plantations received consecutive rains for three days – ranging from 19 to 24 cms in different agro-zones.

“Late showers had delayed our top quality high-grown winter speciality teas.  Now, such teas are in the market and the supply will go on for some weeks in April.  Plantations have lost 30 to 40 per cent of their normal crop this winter due to prolonged dryness and harsh winter conditions”, G Udayakumar, Director, Avataa Beverages, told Business Line.  

A market-leader in Nilgiri winter speciality teas, Avataa’s silver needles had fetched ` 11,550 a kg in the last speciality tea auctions.

“Last week’s rains are a blessing to tea bushes.  Now, greenery is returning in our Billimalai Estate with the leaves stocking the much needed juice for speciality manufacture.  The quantity is low but picking up while the quality is peaking reflecting the winter characteristics of the teas filling up the order books from both upcountry connoisseurs and exporters”, Avataa Speciality Tea Production Executive ENR Vejayashekara said.   

“There is mild breeze now reducing the temperature for the tea bushes to comfortable levels.  If we get a couple of more showers, the output of standard green leaf and hence the manufactured speciality tea will raise considerably”, he added.   

“Drought has affected the arrival of tea for auctions.   Last week’s offer of 8.99 lakh kg at our auctions was the lowest volume so far in calendar 2017”, Ramesh Bhojarajan, Chairman, Coonoor Tea Trade Association, said.

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

PRICES - 7:

MARGINAL GAIN IN TEA PRICES IN INDIAN AUCTIONS IN 2017

P S SUNDAR

                    There has been a marginal increase in the prices fetched by Indian teas at the auction centres in the country in the current calendar over 2016.

This happened despite a fall in prices in North Indian auction centres because of a sharp gain in South Indian auction centres, reveals our study of the market reports of the various auction centres and the latest data available with Tea Board.

Tea Prices up to February in North Indian auctions averaged ` 120.12 a kg against ` 122.13 in the same months of 2016.   This fall of ` 2.01 a kg marked a decline of 1.65 per cent.  This followed lower supplies due to winter closure of factories and the concomitant lower absorption.

In the same months, upcountry buyers stepped up their purchase at South Indian auctions to bridge the short supplies in North India and this helped South Indian tea prices to rise to an average of ` 114.93 a kg from ` 107.36 in 2016.   This increase of ` 7.57 a kg marked a gain of 7.05 per cent.

Consequently, the all-India average price at all auctions in the country rose marginally to ` 119.16 a kg from ` 118.27, marking a gain of just 0.75 per cent.

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

EXPORTS -- 6:

INDIA’S TEA EXPORTS TAKE A BEATING IN JANUARY 2017

P S SUNDAR

                     India’s tea exports have taken a beating in calendar 2017.

There has been a decline in the volume shipped and the value earned in January 2017 compared to January 2016, reveals our analysis of the latest data available with Tea Board.

A rise in the asking price led to reduced purchases resulting in lower overall earnings.  Besides, a reduction in the availability of tea for exports due to inadequate production of South Indian teas obstructed the free flow of volume for shipment.

In January, India’s tea exports dropped to 19.02 mkg from 20.37 mkg in January 2016, marking a decline of 6.63 per cent even as exporters raised the asking price to ` 194.98 per kg from ` 189.93, up by 2.66 per cent.   

Consequently, India’s export earnings dropped to ` 370.86 crore from ` 386.89 crore, marking a decline of 4.14 per cent.

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

PRODUCTION -- 20:

NILGIRIS FEB TEA OUTPUT DOWN 29%

P S SUNDAR

Tea companies in the Nilgiris have informed Tea Board that their production in February had fallen by 29.21 per cent and the cumulative output in the first two months by 9.89 per cent.

February was a dry month with no agro-climatic zone in the district receiving any rainfall.

Consequently, the harvest of green leaf was low and factories functioned far below their capacity.

This was reflected it their production falling to 0.82 million kg (mkg) from 1.17 mkg in February 2016.   This fall of 0.35 mkg marked a decline of 29.91 per cent.

The five-year mean production for February was 0.88 mkg and so, February 2017 output was 6.82 per cent lower than this.

The cumulative output in the two months dropped to 1.64 mkg from 1.82 mkg.  This fall of 0.18 mkg marked a decline of 9.89 per cent.

The five-year mean production in the two months was 1.75 mkg and so, Jan-Feb 2017 output was 6.29 per cent lower than this.

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

PRODUCTION -- 19:

WORLD TEA BOWL FACES SHORT SUPPLY

P S SUNDAR 

                   There seems to be a shortage in black tea supply in the world despite a marginal increase in India’s production. 

“According to the official data received from different countries, our compilation shows that the world black tea production so far this year has fallen to 85.55 million kg (mkg) from 104.85 mkg in the same period of 2016”, Rajesh Gupta, compiler of annual Global Tea Digest, told me.

This shortfall of 19.30 mkg marked a decline of 18.40 per cent. 

The shortfall has happened because of lower output in two major producing countries – Kenya and Sri Lanka.   Kenya lost as much as 17.32 mkg to produce 32.99 mkg while Sri Lanka lost 3.83 mkg to produce 21.25 mkg. 

India has traditionally been the largest producer of black tea in the world but as of now, India ranks third after Kenya and Sri Lanka.

“India’s production has increased marginally by 1.04 mkg to total 18.99 mkg.  Here, North India produced 2.459 mkg more to reach 5.86 mkg while South India lost 1.45 mkg to dip to 13.13 mkg”, Gupta noted.  

The global situation is expected to change once North East India recovers from winter and takes up production, say by April.  Thereupon, India is slated to top the world black tea production table as in the past.

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

PRODUCTION -- 18:

INDIAN TEA OUTPUT IN JANUARY UP 6%

P S SUNDAR

                   Indian tea industry has had a good beginning in 2017 showing signs of yet another record production this calendar.

“Tea Board has now released the official production data for January at 18.99 million kg (mkg) against 17.95 mkg in January 2016”, Rajesh Gupta, compiler of annual Global Tea Digest told me.

This increase of 1.04 mkg marks a growth of six per cent, thereby promising chances of higher output over last year.  This is significant because India’s tea production in 2016 was all-time high at 1239 mkg.

“Production increased in January because of a massive rise in North India as South India posted a decline”, Gupta said.   

North Indian production rose by as much as 74 per cent to touch 5.86 mkg from 3.37 mkg.   Assam Valley reported a shortfall of eight per cent at 0.46 mkg; all other regions reported higher production.

South Indian production dropped by 10 per cent to fall to 13.13 mkg from 14.58 mkg due to adverse weather.  Tamil Nadu topped the country’s production table at 9.25 mkg, down by one per cent over January 2016. 

Kerala lost as much as 26 per cent with production falling to 3.56 mkg from 4.79 mkg.

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

FOR THE RECORD -- 29:

CTTA TURNOVER INCREASES BY ` 10 Cr

P S SUNDAR

                Producers and traders who operated through the auctions of Coonoor Tea Trade Association (CTTA) in January and February have earned ` 10.01 crore more compared to the same months of 2016. 

“This has happened because 5.17 lakh kg more tea was sold even as the average price rose by ` 6.72 per kg, thanks to increased demand from upcountry buyers and higher quality of winter tea”, CTTA Chairman Ramesh Bhojarajan told me.

In the two months, eight auctions had been conducted when the average price rose to ` 107.69 per kg from ` 100.97 following increased demand for better quality tea grades resulting in the volume sold rising to 71.31 lakh kg from 66.14 lakh kg.

Consequently, the cumulative turnover increased to ` 76.79 crore from ` 66.78 crore.  This increase of ` 10.01 crore marked a growth of 15.13 per cent. If this trend continues, the year may end up with the turnover increasing by ` 60 crore over 2016.

Darmona Tea Industry, a small-scale tea factory, has created a new record in the 54-year-old history of CTTA by topping the auction for the third consecutive week beating entries of all kinds of tea from all manufacturers including corporates. 

“We have broken our own earlier price records.  We have also fetched the year’s highest price scripting a new page in CTTA annals as a grade from a small-scale factory beating even corporate tea grades”, said Darmona’s Managing Partner Dinesh Raju.

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

FOR THE RECORD -- 28:

CHAMRAJ TEMPLE KUMBABISHEKAM ..

CORPORATE SOCIAL RESPONSIBILITY.. 

OUTLOOK FOR 2017..

NEW RECORD IN INDIA'S TEA PRODUCTION IN 2016.

RISE IN WORLD TEA OUTPUT IN 2016..INCREASE IN CTTA EARNINGS IN JANUARY 2017..

INDIA'S EXPORTS TAKE A BEATING .. 

BY P S SUNDAR.

(articles in The Assam Review and Tea News, Feb 2017)

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