Kolkata, Oct 16 IBNS | 12 months ago

Tea production in India in 2013 is expected to grow by around 5pc this year and likely to end above 1,180 million kgs due to adequate rains, according to Tea Board of India.


Last year, tea production was 1,126 million kgs as per data available from Tea Board of India.

During the period from January to August this year, tea production has risen by 6.2pc to 705 million kgs as compared to 664 million kgs during corresponding period of last year.

Total supply of tea including imports is likely to be around 1,200 million kgs this year. Total supply has grown by compounded annual growth rate (CAGR) of 4.5pc in last three years till 2012; while total demand including exports has grown by CAGR of around 1.5pc . In 2012, total supply of tea including imports was 1,147 million kgs; while total demand including exports was 1,096 million kgs, according to Tea Board of India data.

"Till August, growth in tea production has been above the CAGR of last three years. For the full year, we expect growth of around 5pc , which will translate into production of around 1,180 million kgs. Together with imports of about 20 million kgs, the total tea supply would be about 1,200 million kgs this year," said Paras Desai, Executive Director, Wagh Bakri Tea Group.

He further said that Assam Valley, Dooars and Terai regions have shown good growth, which together contribute to 60pc of total production.

"Production in these regions will be higher in September and October also and so we expect overall growth of 5pc . Though production in south India has gone down during this period, we expect production figures to improve in the next two months due to good rains there," Desai added.

For the first quarter of Jan-Mar 2013, exports rose by about 34pc to 59.8 million kgs. "Even if the exports were to rise by 15pc compared to last year, we would have more than 900 million kgs of tea left for domestic consumption," Desai said.

Even if only production figures are taken into account, then it has exceeded domestic consumption and exports by around 45 million kgs. This indicates that since last two years, Indian tea production has exceeded total demand, according to data from Tea Board of India.

In spite of excess of production over demand prices of quality teas have moved up over last year.

Today tea is the cheapest beverage with health benefits.

Hence, to address excess of supply over demand of tea, Tea Board Chairman has taken up the task of making tea more popular pan India be it in urban or rural areas of India giving it a slogan 'Chai Piyo Mast Jiyo'.

(Posted on 16-10-2013)