Tea output in India, the world's second biggest producer, fell 11.9 percent to 104 million kg in June as a pest attack in the biggest producing region badly affected plantations, Tea Board said on Tuesday. The drop in output also affected the country's exports, which slumped 14.6 percent to 12.76 million kg in June, the Board said in a statement.
A pest attack of helopeltis adversely affected tea gardens in the north-eastern state of Assam, India's top producer. "The fall in output is higher than industry's expectations. It was expecting 8-10 percent fall in production," said an official of Calcutta Tea Traders' Association.
Despite a drop in June production, the south Asian country's tea output in January-June stood at 339 million kg, up 1.5 percent on year due to higher crop in January-April. Faced with severe drought in the major tea producing areas, India's total tea production in 2009 fell marginally to 978.9 million kg from 980.81 million kg in 2008.
Tea Board chairman Basudeb Banerjee told Reuters last month that the country's tea output in 2010 is likely to fall below 2009 level. "Pest attack is now under control, but it had caused damage in July as well. We are expecting lower output in July," said a senior Board official, who declined to be named.
India exports CTC (crush-tear-curl) variety of tea, mainly to Egypt, Pakistan and the UK, and the premium orthodox variety of tea to Iraq, Iran and Russia. In January-June, the country's tea exports stood at 83.9 million kg, 12.6 percent higher on year, the statement said. However, average realisation during the period fell by 6.4 percent to 123.48 rupees per kg. Tea prices in India have been rising for the past one month due to lower crop in June.