South Indian tea production down for fourth consecutive year

KOLKATA: Tea production in southern India is down for the fourth consecutive year due to unfavourable weather conditions, says a report by the United Planters Association of South India (UPASI).

"There is a shortage in the global tea supply during the first quarter of 2012. All major producing destinations reported decline in production due to adverse weather condition. According to the information available during the first three months, the global tea crop is estimated to be lower by 30 million kg," said Mr Azam Monem, director of McLeod Russel India Ltd.

South Indian planters said that during the first four months tea crop could be lower by around 9 million kg. "South India witnessed one of longest duration of dry spell which has affected the production, said Mr D P Maheshwari, MD of Jay Shree Tea & Industries.

The country's total tea production in first three months of 2012 fell by 12 million kg year-on-year to touch 82.29 million kg, according to the Tea Board of India. India's tea production in 2011 rose to a record high of 988.3 million kg.

However, reports say that price realisation from South India is on the higher side due to the shortage and higher exports. The average price realisation in South India for the first three months of 2012 stood at Rs 76.26 per kg.