Tea prices expected to remain firm in 2013

KOLKATA: Indian consumers may have to pay more for the cuppa as tea prices is expected to remain firm in 2013. Prices of tea at the auction have already risen by Rs 20 -25 per kg and industry officials feel that this trend is likely to continue in coming months as well.

A.N. Singh, chairman of Indian Tea Association said: "The second flush teas has been delayed due to erratic weather conditions in some parts of Assam, Cachar and Tripura. This will push up prices in the domestic market."

Assam Valley as a whole has reported the January to May 2013 crops to be marginally ahead at 2.2% over 2012 levels, but regions such as lower Assam (Sonari, Jorgat and Golaghat) and Cachar and Tripura recorded a negative growth of 8.2% and 21.1% respectively.

The cropping trend has been extremely mixed this year. Factors retarding crop are extremely high temeperature, delayed monsoons and uneven distribution of rainfall and prevalence of pest activity in some areas.

Both upper Assam and North Bank of Brahmaputra have reported late arrival and uneven distribution of rains and prevalence of high temperature ranging between 37 - 40 degree Celsius. Such high temeperatures are slowing down photosynthesis and metabolic activities in the plants. Estates in some parts of the North Bank adjoining the hills have reported cloudbursts with rainfall of 140 mm in a span of 2-3 hours. This has resulted in flooding and surface erosion of topsoil. ""But in certain areas rain is yet to arrive,"" said Mr Singh.

Azam Monem, director of McLeod Russel India said that there will be a lot of pressure on supply of quality tea not only due to weather conditions but also due to conversion of nearly 15 million kg of CTC tea to orthodox or handrolled teas. The industry has been forced to convert CTC teas to orthodox teas as demand from countries like Iran and Saudi Arabia has gone up. India is expected to produce 85 -90 million kg of orthodox tea this year.