Tea companies in India are anticipating bright prospects for the industry with prices expected to increase by 8-10 per cent. The expected rise in prices comes after a long period of stagnant phase. One of the reasons for the likely rise in prices is the shortage of production, say experts.
According to Tea Board India data, production in North India declined by 42 million kg in September. Apart from Assam, tea production in the Dooars and Terai regions of West Bengal also went down by around nine million kg owing to vagaries in climate.
“September tea production was down substantially in North India owing to climatic adversities. There were some marginal gains in October. However, there was a drop in production taking September, October and November collectively. Thus, the prices should be Rs 10-15 a kg higher,” said Indian Tea Association Chairman Azam Monem.
In 2016, India produced 1,267.36 million kg of tea, with North India -- which includes Assam and West Bengal -- accounting for 1,054.51 million kg. The decline is even more prominent in Assam where production declined by around 31 million kg in September due to excessive rains.
The overall crop in Assam fell by 23 million kg in the Jan-Sept period of this year. The decline is even more prominent in Assam where production declined in September due to excessive rains.