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Tea Production Rises 2.2% In 2011; Falls Short Of 1 Bn Kg Mark (10-Feb-2012)

Indian-Commodity  :  Commodity-Market >> Other Commodities  :  Tea Production Rises 2.2% In 2011; Falls Short Of 1 Bn Kg Mark
Tea Production Rises 2.2% In 2011; Falls Short Of 1 Bn Kg Mark
Lower crop in West Bengal and Tamil Nadu prevented tea production from touching the magical one-billion-kg figure, as it increased 2.2% in 2011 to a record. As per the Tea Board data, production increased to 988.32 million kg (mkg) against 966.40 mkg the previous year. Earlier the record production was witnessed in 2007 when the production was 986.43 mkg.

Production in West Bengal dropped to 226.36 mkg against 229.78 mkg a year, as the crop was hit by heavy rain during monsoon last year. On the other hand, Darjeeling tea production increased to 9.7 mkg compared to 8.8 mkg a year ago. Output is Assam also increased over 28 mkg to 508.74 mkg with the Assam valley contributing an additional 31.93 mkg at 460.66 mkg (428.73 mkg).

On the South front, output plunged by 2.4 mkg to 240.88 mkg (243.37 mkg) with the crop being over 3 mkg lower in Tamil Nadu. Crop output was mainly hit initially by a dry spell in the early parts of 2011 and then by wet spells and frost in the latter part of the year. Kerala, however, reported a better crop, whereas there was marginal fall in Karnataka.

India had targeted a production of 1 billion kg by 2010 but reduced crop management due to lower prices and weather, combined to cause a setback. After touching a record 986.43 million kg in 2007, tea production dropped to 980.82 mkg in 2008 and further to 978 mkg in 2009 and 966.40 mkg in 2010. However, higher prices subsequent to lower crop in Kenya and Sri Lanka led to better prices in 2010. This, in turn, led to better crop management and higher production last year.
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