KOLKATA: India closed 2006 with an increased tea crop of 956 million kg which was three per cent higher than the previous year. However, the southern gardens, contributing about 20 per cent of the total production, have suffered a marginal drop, while the gardens in the north have shown a 4.1 per cent increase in production.

Tea prices too improved during this time, bringing cheer to the tea companies whose bottomlines are expected to improve. Average prices were Rs. 65.80 a kg which was Rs. 7.70 higher than in 2005, although it was still lower than the Rs. 86.90 level reached in 1998, according to the Indian Tea Association. Prices were higher at all the auction centres in the north and the south. Industry sources attributed the higher prices to increased consumption levels.

According to the Tea Board, exports in 2006 stood at 204 million kg bringing earnings of Rs. 1,831 crore. The 4.8 million kg gain in volume did not translate in to higher export earnings since prices were slightly lower for Indian teas. Iraq, with imports of 42 million kg, was India's biggest market in 2006, displacing Russia which bought about 33 million kg.

Countries where India lost markets were Russia, Kazakhsthan, the U.K. and the UAE.

However, handsome gains were registered in exports to Afghanistan, Pakistan and Kenya which suffered a 5.5 per cent crop loss and imported increased quantities of Indian tea for blending.

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