CALCUTTA

THE CONSULTATIVE Committee of Plantation Associates, has advised tea producers in north India to stop production, particularly of end-season quality teas.

The CCPA has asked members to cease all plucking operations from December 12. While the directive is apparently innocuous, the underlying message is a chiller.

Obviously the planters realise the dangers of carrying on with production during December, at a time when nature does not allow for good quality teas.

This means tea prices could fall further. The industry is already reeling under low price realisations.

Besides, the valuation offered by the brokers for teas other than the big names is disconcerting to the planters, especially the small growers, who often depend on the end-season produce for beefing up bottomlines.

North India during the end season manufactures coarser varieties and therefore low quality. Thus, planters have been advised to stop plucking leaves from the second week of December.

Apparently, constituent associations of CCPA are unanimous in their decision. No one is willing to witness further declines in tea prices. Besides, the tea auction centres and terminal markets are flush with teas, since large quantities have remained unsold in practically all centres.

A corrective action was therefore not out of place, feels CCPA defending the decision to stop leaf plucking and curtailing production of teas. The apex association is also fairly confident that such a move will not hamper exports. Exports may not suffer is due a higher orthodox production.

The industry hopes to produce 35 million kgs more of orthodox teas, all of which find export markets.

18.11.2000

The Economic Times

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