Tea prices on a boil due to bad weather

KOLKATA: An erratic weather has affected the quality of second-flush teas produced in Assam, West Bengal and Tripura this season. Tea prices have gone up by Rs 20-25 per kg and are expected to rise further in the coming months.

Assam Valley has reported a 2.2% increase in tea production during the January-May 2013 period over the same period in the previous year. But regions such as lower Assam (Sonari, Jorgat and Golaghat) and Cachar and Tripura have recorded a negative growth of 8.2% and 21.1% respectively.

AN Singh, chairman, Indian Tea Association (ITA), said: "Cropping trend has been extremely mixed this year. Factors retarding crops are extremely high temperature, delayed monsoons and an uneven distribution of rainfall and the prevalence of pest in some areas."

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

Azam Monem, director, McLeod Russel India, said there will be a pressure on the supply of quality tea not just due to weather conditions but also due to the conversion of nearly 15 million kg of CTC tea to orthodox or hand-rolled 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.

Monem added that the first-flush production was unexpectedly high compared to previous year. "But now blenders are using poor quality tea which is in surplus. Therefore, consumers will not get better quality teas. There will be a dearth of quality teas now. Hopefully from July-end, the situation will improve. However, prices will be on the higher side this year," he said. On the export front, the India tea industry expects to fair better compared to last year.

"It is true that Kenyan production has gone up and the country has taken full advantage of it this year. But their production is now over. For the rest of the, year buyers will have to depend on Assam teas and we are hopeful to have sizeable exports this year," said Monem.