Climatic conditions lead to global shortfall in tea crop in first half

September 10, 2009 06:14 pm | Updated December 17, 2016 04:03 am IST - KOLKATA

Tea export set to touch 210 m kg: Lady worker plucking tea leaves in a plantation near Meppady in Wayanad district in Kerala.Strong demand from emerging markets such as Egypt, Russia and Pakistan would see tea exports grow to about 210 million kg this year,  Tea export during January- August grew by 16 percent to 124 million kg (106.6 million kg in the same period in 2007) in volume terms. Digital Picture By K_K_Mustafah.4/11/08. NICAID:110383123

Tea export set to touch 210 m kg: Lady worker plucking tea leaves in a plantation near Meppady in Wayanad district in Kerala.Strong demand from emerging markets such as Egypt, Russia and Pakistan would see tea exports grow to about 210 million kg this year, Tea export during January- August grew by 16 percent to 124 million kg (106.6 million kg in the same period in 2007) in volume terms. Digital Picture By K_K_Mustafah.4/11/08. NICAID:110383123

The world may be heading towards a global shortage of tea, with a 68.7 million kg shortfall being reported in the almost all the major black tea-producing countries till between January and July this year.

Officials statistics show that led by Sri Lanka, which suffered a shortfall of 42.6 million kgs ( 21.3 per cent) the two other major black tea producers - Kenya and India - too have suffered shortfall on account of drought conditions. While Kenya has lost 20.8 million kgs of its crop( a 11.5 per cent drop), India's loss has been pegged at 15.8 million kgs which translates into a 3.3 per cent shortfall.

Prices have obviously been impacted and are now moving in a range of Rs 100 per kg in India, Kenya and Sri Lanka , where the upward spiral has been the steepest registering a rise of Rs 32 per kg . In India, the price hike has been the sharpest in the South where it has increased by Rs 25.7 per kg between January and June 2009.

Latest statistics show that the tea estates in India produced 460.8 million kgs of tea till July this year which is 3.3 per cent lower than the previous year (same period). Both West Bengal and Tamil Nadu, each accounting for a quarter of India's tea crop ended the first half of the year with shortfall of over five million each. Assam accounting for about 50 per cent of India's production, recovered some of its earlier losses.

Indian tea exports were also lower but earnings were higher on better realisations.

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