Indian tea industry has been on the road to revival during the current fiscal. After years of slump, the tea production has been buoyant while tea prices have too been firm. Riding on better realisations and some favourable changes in international demand-supply dynamics, India has also witnessed buoyant exports in most part of the fiscal.
Buoyant production: During the month of October, tea production touched 125 million kg, registering a growth of nearly 10% over the 113 million kg produced over the same month last year.
Cumulative production of tea over the first seven months of current fiscal has reached 742 million kg, up 4% compared to 713 million kg produced over the same period during last fiscal.
Prices continue to remain firm: Tea prices have been firming up throughout the current fiscal. During the month of November, average auction prices stood 35% higher at Rs 100.8/kg compared to Rs 69.1/kg during the same month last year.
Average price witnessed during the Apr-Nov period this fiscal at Rs 94.37/kg is nearly 30% higher than average price over the same period in last fiscal at Rs 74.90/kg.
Rising exports: Tea exports have mostly been buoyant during the current fiscal. However, the ongoing global economic turmoil had its affect on tea too as exports declined mildly in the month of October to 16.5 million kg compared to 17.4 million kg of tea exported in the same month last year.
Cumulative tea exports over Apr-Oct period in the current fiscal have registered a growth of nearly 8% at 105 million kg compared to 97 million kg exported over the same period last fiscal. However, industry insiders believe that exports will pick up over the remaining period and India will be able to achieve the target of 200 million kg of exports over FY09.
Riding on improved per unit realization, exports have shown much higher growth in terms of value. Per unit piece realised from exports increased from Rs 101/kg in October 2007 to Rs 127/kg in October this year and total realisations from exports touched Rs 1220 crore compared to Rs 1040 crore a year ago.