Ending a two-month long robust growth, tea production in the country has changed its course and entered a period of trough with the absolute quantity declining from 1.08 tonne in August to 1.02 tonne in September. This translates into a relative decline of 1.15 per cent on a month-on-month basis, according to the latest Monthly Review of Indian Economy published by the Mumbai-based Centre for Monitoring Indian Economy (CMIE).

According to the CMIE data, the cumulative tea production growth during the January-September period this year was 7 per cent compared to a robust 8.8 per cent growth registered during the same period last year. However, the production trends of the north Indian tea and south Indian tea continue to tread a divergent course with former growing at a rate of 7.7 per cent compared to a lower 5.1 per cent growth registered by the latter during the same period. Tea prices continue to go downhill with September recording the ninth consecutive month of decline over the corresponding months of the previous year. Average tea prices fell by 13.1 per cent during the January-September period. Prices fell by 11.8 per cent during the same period previous year, filling the tea growers cup of woes to the brim. However, there are some good news from the export front with the total exports perking up by a substantial 19.8 per cent during the April-July this year as compared to a drastic fall of 12.9 per cent during the same period last year.

However, market sources felt that the current decline in production is unlikely to translate into a better price realisation as the demand for the commodity from the traditional markets are ebbing. They feel the spurt in the exports was mainly the manifestation of a weak rupee and a minimal growth in quantity.

(25/11/2000)

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