Assam tea output crosses 500 m kg

After three years, production of Assam tea has once again crossed the 500-million kg mark. The State has recorded a total production of 508.74 million kg for the year 2011. The figures for last three years were: 480.28 million kg in 2010, 499.99 million kg in 2009 and 487.49 million kg in 2008.

This is for the third time production of Assam tea has crossed the 500-million kg mark over the past 11 years. Total tea production in the country for 2011 is 988.32 million kg, which is the highest over the past 11 years.

North Eastern Tea Association (NETA) Chairman Bidyananda Barkakoty told The Hindu that the credit for the increase in Assam tea production goes to small growers. Production from small growers accounted for about 30 per cent of total production in the State, he said.

The jump in production of Assam tea was despite decrease of two million kg in the Brahmaputra Valley and a drop of three million kg in the Barak Valley in December, 2011, as compared to the corresponding month of 2010. “The decrease in tea production in December was due to less rainfall than required in October. If we had sufficient rainfall in October than we would have got a good pluck in November-December and the final production figure for 2011 would have touched about 513 million kg in Assam and India's total production too would have touched 1,000 million kg,” he said.

The NETA Chairman said that due to drop in November-December production, three weekly sales at the Guwahati Tea Auction Centre (GTAC) had to be dropped in March. “We hope that this year we will have a good demand as there is no tea in the pipeline and there is no chance for carry forward.”

Mr. Barkakoty said the Tea Board statistics showed that Darjeeling recorded 9.7 million kg in 2011 as compared to 8.86 million kg in 2010, Dooars 143.23 million kg (144.56 million kg) and Terai 73.33 million kg (76.35 million kg) while total production in West Bengal 226.36 million kg in 2011 as against 229.78 million kg in 2010.

In 2011, Tamil Nadu recorded a total production of 167.22 million kg, Kerala 68.34 million kg and Karnataka 5.30 million kg.

The Brahmaputra Valley is the single largest tea growing area in the world. Out of the total area under tea in the Brahmaputra Valley, 31 per cent are owned by small growers. According to a survey by the Assam Government, there are 68,465 small tea gardens in 14 districts of the Brahmaputra Valley. Tea is grown in almost all the 27 districts of the State. There are 825 large tea gardens in the State. There are about 1.58 lakh small tea gardens (size below 10.12 hectares) in India, cultivating tea on around 1.62 lakh hectares and producing nearly 260 million kg annually at 440 bought leaf factories. which account for about 26 per cent of the total tea produced in India (according to Tea Board statistics), Mr. Barkakoty said.

Tea was declared as the ‘State Drink' of Assam by Chief Minister Tarun Gogoi on November 22 at the World Tea Science Congress held in upper Assam's Jorhat town on the occasion of 100 years celebration of Tocklai Experimental Station of the Tea Research Association.

Source: The Hindu

India Tea Production fails to reach 1 billion kg mark

Tea production increased 2.2 per cent in 2011 to a record but lower crop in West Bengal and Tamil Nadu prevented it from touching the magic one-billion-kg figure.

According to Tea Board data, production increased to 988.32 million kg (mkg) against 966.40 mkg the previous year. The previous record production was witnessed in 2007 when the production was 986.43 mkg.

WEST BENGAL

Output in West Bengal dropped to 226.36 million kg against 229.78 mkg a year ago, particularly with Terai region being a drag. Production in Terai dropped to 73.33 mkg against 76.35 mkg. Similarly, Dooars produced 143.23 mkg tea (144.56 mkg).

The West Bengal crop was hit by heavy rain during monsoon last year.

Darjeeling tea production increased to 9.7 mkg against 8.8 mkg a year ago.

Production in Assam increased over 28 mkg to 508.74 mkg with the Assam valley contributing an additional 31.93 mkg at 460.66 mkg (428.73 mkg). There was a 3 mkg drop in production in the Cachar region (40.97 mkg vs 51.55 mkg).

TAMIL NADU

In South India, production dropped by 2.4 mkg to 240.88 mkg (243.37 mkg) with the crop being over 3 mkg lower in Tamil Nadu. Kerala reported a better crop, while there was marginal fall in Karnataka.

Tamil Nadu's crop was hit initially by a dry spell in the early parts of 2011 and then by wet spells and frost in the latter part of the year.

The country had targeted a production of 1 billion kg by 2010 but poor crop management due to lower prices and weather combined to cause setback.

After touching a record 986.43 million kg in 2007, tea production dropped to 980.82 mkg in 2008 and further to 978 mkg in 2009 and 966.40 mkg in 2010.

Higher prices following lower crop in Kenya and Sri Lanka led to better prices in 2010. This, in turn, led to better crop management and higher production last year.

However, exports are estimated to have dropped by over 6 mkg in 2011 to 186.73 mkg (193.29 mkg) as Kenya and Sri Lanka made a strong comeback. Problems in exports to Iran and Iraq also contributed to the drop, last year.

Source: Business Line

Weather plays foul on tea

KOLKATA: Blame it on the weather gods if tea production in India does not touch the magical 1,000-million kilogram (mn kg) mark this year. Production was hit due to sparse rainfall from late September and the mercury has plunged before it usually does, affecting tea farming. Total production so far by north and south Indian gardens together is 730 mn kg. Industry experts are not very hopeful of touching the 1,000-mn kg mark. "Since September 20, Assam has experienced very dry weather. Both the north bank of the Brahmaputra as well as upper Assam received low rainfall. The tea crop output is dropping rapidly this month. So, even if it rains now, the Assam tea gardens won't have the same yield. Anyway, some rain is required now to stop the drought-like conditions in the gardens," Rossell India managing director Indian Tea Association (ITA) chairman C S Bedi told TOI. In 2010, the total tea production in India was 966.40 mn kg. "The only year when production came close to the 1,000-mn kg mark was 2007 when Indian gardens together produced 986 mn kg. But production declined in the two subsequent years," said Sujit Patra, ITA joint secretary. Till September, north Indian (including Darjeeling, Terai, Dooars and Assam) production was up by 36.7 mn kg compared to the same period last year. South Indian (Kerala, Karnataka and Tamil Nadu) production during the same period was down by 4.6 mn kg. Till September last year, north and south Indian production was to the tune of 693 mn kg. Industry members also said since October was a festive month, plucking was affected. "This year, all Hindu religious festivals were in one month and there were some other religious festivals also that hit the crop," he said. "Although, there was a surge in crop production in the initial months, but I don't think it will be able to touch the 1,000 mn kg mark as temperatures in north India have already started dropping. Therefore, October, November and December will only see reduction in production," said Aditya Khaitan, managing director, McLeod Russel. His company is the world's largest tea producer. But the Darjeeling tea production can cheer up the tea buff. It is expected that Darjeeling's yield this year will be higher by 10-15% at around 9 mn kg. . "Till October, Darjeeling's 87 gardens together produced around 7.3 mn kg this year," said Darjeeling Tea Association secretary Kaushik Basu. Last year, Darjeeling produced 8 mn kg. Table: Indian Tea Production 2010: 966 mn kg 2009: 979 mn kg 2008: 981 mn kg 2007: 986 mn kg Source: Times of India

Tea prices higher as domestic market increases

Despite a higher crop and lower exports this year, domestic tea prices have continued to hold firm. One of the prime reasons for firm price trends was a spurt in domestic demand, Mr Peter Mathias, Chairman of the UPASI Tea Committee said.

The poorer global tea production, catalyzed by adverse weather patterns, has not helped prop up domestic prices as exports continue to reign low. Latest reports indicate that Kenyan crop continues to reign lower by 31.3 million kg, Indonesia by 8.5 million kg, Uganda by 5.3 million kg and South India by 4.3 million kg.

In contrast, North India was one of the few regions which registered an increase in tea production during the current year. While South India recorded a shortfall in tea production, North India recorded a growth of 38 million kg over last year. This has enabled the country's production to grow by 33.7 million kg during January-August.

South Indian tea production till September is also likely to be lower since it was hampered by consistent rains and lower sunshine days, Mr N. Sanjith, Head of Commodities of the United Planters Association of Southern India (UPASI), said. Heavy rains in the first three weeks of last month hampered plucking operations.

Although the quantum of exports has fallen, the value realization has been looking up. During January-August, tea exports fell by 14.9 million kg, of which North India contributed 11.8 million kg even as South Indian exports fell by 3.1 million kg.

Tea export prices have recovered the most. Average tea export prices were up by Rs 14.19 a kg over last year's Rs 144.77 a kg. The prime reason for lower exports was disturbances in some of India's principal export destinations. Lower exports to Pakistan and Iran during the first half of the year also contributed to the fall. However, sources in UPASI said the association expected the export momentum to pick up in the coming months.

In the domestic market, average price realisation of South Indian tea till the middle of September this year was higher by Rs 2.53 a kg over last year's Rs 69.27 a kg. Orthodox teas continued to fetch a handsome premium over CTC grades at South Indian auctions.

Source: Business line

HML has introduced Surya CTC Tea

Kochi, Oct. 2: Harrisons Malayalam Ltd (HML) has introduced Surya Tea, a mark for its bulk CTC tea to be sold in the Cochin Auction Centre of the Cochin Tea Trade Association. This new mark is made from leaves produced in the Nilgiri-Wayanad region. Surya is a premium quality CTC tea produced primarily keeping the Kerala consumer in mind.

In Kerala, consumers pay a premium for dust grade CTC teas that are known for strength and colour. Surya has been launched keeping with the company's strategy of having one premium mark / brand from each of its production regions.

The company produces 15-18 million kg of tea annually from all its gardens in South India. While the HML has tea-growing areas in High Range (Munnar) and Vandiperiyaar in Idukki District, the main growing region for the company is located in the Wayanad region of North Kerala and the adjoining Nilgiri-Wayanad tea district, where the company has more than 7,500 acres of mature tea.

Source: Business Line

Tea-ing off at the national level

The Vattatharas were black coffee addicts. So were the other inhabitants of village Kongorpilly in Kerala's Ernakulam district. It was inevitable; almost everyone grew Arabica coffee beans in their backyard. That was 40 years ago when VM Thomas, head of Don Bosco Institute in Guwahati, left his village to pursue priesthood.His father, a schoolteacher, was confident that Thomas' missionary zeal would help take coffee to new frontiers. But, "I converted instead, from a hardcore coffee drinker to a regular tea drinker," said Thomas, 60.

Thomas' switchover is understandable. He has spent over 30 years in a state synonymous with tea - Assam. "But it beats me how almost everyone in my village has taken to tea," Thomas said.

For tea industry captains, barring the odd Nilgiri planter, Kongorpilly isn't likely to ring a bell. But the village's surrender to the cup that cheers - and of 593,730 other villages plus 4,378 urban areas across India (2001 census) - is one of several reasons behind their demand for granting national drink status to tea.

With over 83% households addicted to tea, the beverage is unofficially India's 'national drink'. The official tag, planters argue, would ensure better brand value and help promote it as a health drink, with or without (Darjeeling Tea, an asset of the Indian tea industry supposed to be best had without milk) milk and sugar (butter too, in some cases - in Darjeeling where the Tibetans are used to this custom). Most importantly, a national drink is an integral part of a nation's identity, self-image, history, ecology and culture, they assert.

Leading the crusade for the national drink status is the North East Tea Association (NETA), headquartered in the tea-rich Golaghat district of eastern Assam. "India should learn from Pakistan, which had ages ago identified sugarcane juice as its national drink. Or from tea-growing major China, where green tea is a national drink," said NETA chairman Bidyananda Barkakoty.

"New Delhi should at least learn from Britain that does not produce tea but considers the beverage, invariably sourced from India, a national drink. It is funny that India, despite producing the widest range of teas for 180 years, is yet to give it a special status," Barkakoty added.

Planters underscore the irony that even Assam - the state accounts for 50% of India's annual tea yield - never felt the need to declare tea as a state drink. In 2005, the state identified the rhino as its state animal and the white-winged wood duck as its state bird but went dry when it came to the drink.

"That's why we met chief minister Tarun Gogoi recently to impress upon the need to give tea the respect it deserves," said NETA member JK Singhania. "The state drink status can be the stepping stone to tea becoming India's national drink."

State industries minister Pradyut Bordoloi admitted the government faltered in not giving the due to a drink that has made Assam a household name in at least half the world. "We shall be according the state drink status to tea soon," he said.

Most of India swore by home-made alcoholic brews until the arrival of tea, 'discovered' growing wild in Assam by Robert Bruce. The Englishman took the credit for what the Singpho tribal people inhabiting adjoining areas of eastern Assam and western Arunachal Pradesh had been drinking for ages.

The first consignment of tea (350 pounds) was dispatched to Britain on 8 May 1838 and sold at India House, London, on 10 January 1839. Britons developed a taste for the beverage and voted out coffee procured from other colonies. It's time, tea growers and drinkers agree, India voted in tea as the country's national drink.

Source: Hindustan Times

Time to tea off

There is a different tea for each time of the day. Aastha Khurana tells you more

Indians are fond of having tea. They mix and blend different types to suit their tastebuds. But what many people are unaware of is that there is a particular variety of tea for each part of the day.

A cup of ‘green tea’ is a healthy way to start your day . “Green tea kills oxidants in body and helps weight loss. It helps detoxification of skin. Besides inhibiting the growth of cancer cells, it kills cancer cells without harming healthy tissues. It has also been effective in lowering LDL cholesterol levels and inhibiting the abnormal formation of blood clots”, says Dr Ritika Samaddar, HOD, nutritional therapy, Max Healthcare. She, however, adds that green tea should be avoided after six in the evening as it can lead to insomnia.

Darjeeling Tea (black) is the best mid-morning tea. Black tea tastes the best when brewed in a kettle. “Black tea blends with every flavour. One should have it with fresh herbs like tulsi and rosemary in the morning. During evening, cinnamon and cardamom are well suited. It is also good for students during exams as it helps them stay awake,” says Radhika Batra Shah, a noted tea connoisseur and tea consultant with Godrej Nature’s Basket.

“Black tea can help prevent heart attacks, and stomach, prostate and breast cancer. The chemicals found in black tea slow down cancer growth”, says Dr Samaddar.

After a heavy lunch, flower teas like chamomile, jasmine and lavender work wonders. “Flower teas blend beautifully with black tea for a stronger version,” Radhika adds. Chamomile tea has an aromatic and fruity flavour and is known for being effective against toothaches and insomnia. It helps settle indigestion and reduces skin irritations. Jasmine tea can be taken at any time of the day and goes well with food. It aids digestion, has antibacterial properties, helps prevent heart disease and has anti-ageing component.

Regular use of floral tea can make a significant contribution. Apart from having medicinal benefits, floral tea also gives a sense of calm and peace.

Oolong tea is the best accompaniment to meals. “It helps people with heart-related issues. It can promote longevity by stimulating bodily functions and strengthening the immune system. It promotes the development of healthier and stronger bones, protecting people from osteoporosis,” tells Radhika. Oolong is popular with men as it tastes like having a cigar.

White tea aka bedtime tea is the perfect choice to end your day. “White tea thins the blood and improves artery function. It helps lower blood pressure and reduces blood sugar. It reduces stress and increases energy. It is good for people who are on a diet as it keeps them away from sweets. It increases metabolism by encouraging the body to burn more fat,” says Radhika.

Source: The Pioneer

India tea imports down 22 per cent in April-July, 2011

NEW DELHI: India's tea imports declined by 22 per cent to 5.19 million kg in the April-July period of the current fiscal.

The country had imported 6.62 million kg of the brew in the same period last fiscal, as per data released by the Tea Board.

India, the world's largest consumer of tea, imports the leaves solely for the purpose of re-export to other countries. The dip in imports thus signals less re-exports.

India's tea imports from China, Kenya, Malawi, Vietnam, Sri Lanka, Iran, Argentina and Nepal declined in the first four months of the 2011-12 fiscal.

Imports of tea dipped by 19 per cent in July, 2011, to 1.67 million kg from 2.06 million kg in the year-ago period.

In the January-July period of the current calender year, imports of the brew fell by 19 per cent to 9.42 million kg from 11.64 million kg in the same period of the previous year.

India, the second biggest producer of tea in the world, accounts for about 28 per cent of global tea production and 14 per cent of trade. There are about 1,600 tea estates in India. The industry employs more than two million people.

Source: Economic Times

Tea prices to stay firm as global output slips

Kochi, Sept. 19: Tea prices are likely to remain firm as production shortfalls loom large before Indian and global tea markets.

Persistent rains over the tea growing regions of South India during August and September is likely to adversely impact the crop. Though the rains seem to have abated by the third week of September, sources said, much of the damage has been done.

The surfeit production from North India made up for the sharp production shortfalls from South, said Mr R. Sanjith, Head of Commodities, United Planters Association of Southern India (UPASI).

Production affected

The incessant rains had affected plucking operations in South India. But it does not seem likely that the increased North Indian production, which had helped to buttress the slippages from South India, is likely to continue into the next few months.

Along with India, production shortfalls in Kenya, Sri Lanka and Uganda are likely to drag global production lower.

Kenya and Uganda

Global production had dipped by 11 million kg by July on account of huge shortfall from Kenya and Uganda. A dip in tea production from India could further tilt the delicate demand-supply balance in the global markets.

Indian production was higher by close to one million kg while Kenya reported a huge shortfall of 31 million kg. Ugandan production had slipped by over 5 million kg. Latest reports also indicate that persistent rains have begun to affect the tea crop from Sri Lanka. The island nation's tea production was up by close two million till July 2011. Sources in the trade said that all that could now change.

Exports

Tea exports from big producing countries, excluding China and Sri Lanka, had dipped during the current year. Indian exports witnessed the steepest decline on 17.5 million kg till July 2011, while Uganda recorded an export shortfall of six million kg and Kenya close to five million kg. The decreased tea arrivals in the coming months could mean that the prices are likely to remain firm.

Growth in China

While several countries recorded fall in exports, China reported brisk growth by close to 14 million kg by June 2011. Kenya was the biggest tea exporter in the world last year, accounting for over 25 per cent of the global tea trade, followed by China and Sri Lanka with over 17 per cent and with India with over 11 per cent.

After the sharp rise in tea prices during 2009, there was a dip in 2010 and the prices are continuing to rule at last year's levels. The emerging trends in global prices could become evident depending on the world production trends in the coming months.

Source: Business Line

India dust tea rises on demand; CTC drops on quality

MUMBAI, Sept 16 (Reuters) - Dust tea prices in India, the world's second biggest producer of tea, rose at this week's auction on good demand from packet tea manufacturers, while CTC fell due to poor quality leaf supply, dealers and industry officials said on Friday.


Price of CTC (crush-tear-curl) tea was at 124.85 rupees per kg, 1.43 percent lower than 126.66 rupees at the previous weekly auction.
Dust tea rose 0.63 percent to 123.01 rupees per kg from 122.24 rupees at the previous auction.
"Quality of CTC was poor compared to the arrivals in the previous auction. That's why it fetched lower prices," said Kalyan Sundaram, secretary, Calcutta Tea Traders Association. "Packet tea makers were actively buying dust tea."
Tea exports by India could fall nearly 7 percent in 2011 to 180-185 million kgs partly due to payments problems with Iran and unrest in the Middle East, a senior industry official said on Sept. 14
India is the world's second biggest producer of tea after China. It exports CTC tea mainly to Egypt, Pakistan and the UK, and the premium orthodox variety to Iraq, Iran and Russia.
The country's tea production in July rose 8.2 percent to 133.27 million kgs, on conducive weather, while exports fell 8 percent to 15.26 million kgs due to poor demand from the Middle East, the Tea Board said on Sept. 8.
Prices in the latest auction (Sept 13-15)


(Quantity in kg; price in rupees per kg) ----------------------------------------------------------
Variety Offered quantity Sold quantity Avg Price ----------------------------------------------------------
CTC Leaf 2997127 2219571 124.85
Dust tea 1568846 1163630 123.01
Prices in the last auction (Sept 6-8)
----------------------------------------------------------
CTC Leaf 2917786 2369358 126.66
Dust tea 1614557 1194400 122.24
Source: Calcutta Tea Traders' Association (Reporting by Rajendra Jadhav; Editing by Sunil Nair)

Source: Reuters

KPMG reviewing Tea Board schemes

Kolkata, Sep 16 (PTI) International consultancy firm KPMG is making an assessment of the various schemes of Tea Board and the final report would be submitted by the end of the month, Tea Board Deputy Chairperson Roshni Sen said today. "KPMG is doing an assessment to review the various schemes and has submitted the draft report. The final report will be submitted by the end of the month," Sen told reporters on the sidelines of the AGM of the Tea Association of India here. Sen said that among the various schemes which are under review are the Special Purpose Tea Fund (SPTF) and the orthodox subsidy scheme. She said that at present, Tea Board is facilitating disbursement of loans to companies at soft rates and repayment is being made by the proceeds at the auctions. The official said KPMG had suggested that instead of Tea Board distributing loans to companies, the government should give interest subsidy. On the orthodox subsidy scheme, Sen said that Tea Board had proposed for its continuation in 12th Five-Year Plan to the Planning Commission. On the Iran payments crisis, Sen said it has not resolved yet and is hurting export of orthodox tea. Sen said that e-auction process would be streamlined in consultation with the industry. Minister for Development of North-East Region P S Ghatowar said that the tea industry should not discriminate between workers of West Bengal and Assam.

Tea output in first seven months up 6.37%

India's tea production in the first seven months of current calendar has increased by 6.37 per cent over the same period of last year, reveals an analysis of the latest data available with Tea Board and producers' organisations. Between January and July, production increased to 491.59 million kg (mkg) from 462.16 mkg during Jan-July 2010. This increase of 29.43 mkg marks a growth of 6.37 per cent. The increase would have been more had it not been for a decline of 3.60 mkg in South Indian production. North India posted a gain of 33.03 mkg. North Indian output rose by to 348.14 mkg from 315.11 mkg. Assam continued to dominate India's tea map with a production of 234.32 mkg (last year: 204.50) accounting for 47.67 per cent (44.25 per cent) of the country's overall output. West Bengal's production increased to 110.38 mkg (107.33) of which, the share of Darjeeling tea, hailed to be the tea champagne, was 4.99 mkg (4.20). South India's production dropped to 143.45 mkg from 147.05. Tamil Nadu's output declined to 100.19 mkg from 103.27 mkg. Kerala and Karnataka also posted lower production. Source: Business Line

Tea baron held for bar attack - Brew auction stopped, market closed after arrest

Siliguri, Sept. 2: The chairman of the Siliguri Tea Auction Centre and a businessman were arrested today for allegedly leading a group of people who had attacked a bar with crooners at Sevoke Road yesterday. The STAC chairman, Gangadhar Agarwal, and the owner of a chain of sweet shops, Pradip Bansal, have been charged with theft, assault and mischief and remanded in 14 days’ jail custody. Traders shut down the auction centre and the wholesale grocery market in Khalpara, where Agarwal and Bansal reside, to protest the arrest. Around 40 people carrying Congress flags barged into Rave Up, a bar where singers perform live, and went on the rampage. In his complaint filed with Bhaktinagar police, the owner of the bar, Vijay Sharma, alleged that the attackers had heckled his staff and taken away cash from the counter. “All of them suddenly entered the bar and smashed the furniture. I have no clue why they attacked my bar as only live singing is allowed and there is no question of dance performance to which they were objecting. Two of my employees have suffered injuries as they tried to dissuade the attackers,” said Sharma. Recently, a forum known as Singing Bar Pratibad Mancha had emerged in town with the backing of the Congress. “Our key demand is to stop the practice of singing and dancing in bars. We have been organising a movement in a democratic manner for the past three months and have no connection with yesterday’s incident,” said Jayanta Saha, the joint convener of the Mancha. The office-bearers of the Mancha and bar owners held a meeting on Wednesday and it was decided that there would be no dance performance in any outlet selling liquor in Siliguri. “Regarding live singing, a seven-member committee comprising the representatives of the Mancha and bar owners’ association was formed to look into the issue and decide on timings, dress code of the singers and other issues,” said Saha. He said both Agarwal and Bansal were members of the Mancha and were wrongly implicated in the case. The duo were arrested from their homes. As the news spread, the tea auction came to a halt. “We did not participate in the auctions today to protest against the arrest of the STAC chairman,” said Bajrang Sethia, a senior member of the Siliguri Tea Traders’ Association. Around 100 million kilogram of tea is traded at the centre annually. The auction will resume at 9am tomorrow. Shops downed shutters in Khalpara as both Agarwal and Bansal were from there. “Both are our members and we protest the way they have been falsely named in the case,” said Kailash Agarwal, the secretary of the Siliguri Merchants’ Association. The arrested men were produced in the chief judicial magistrate’s court in Jalpaiguri. The judge, Debabarata Mukherjee, rejected the duo’s bail petitions and ordered 14 days’ jail custody for them. They would be produced in court again on September 16. The North Bengal Musical Bar Owners’ Association has denied the allegation that dance performances are held in their outlets. They said all musical bars would be closed for an indefinite period from today. “We condemn the way a bar here was ransacked without any provocation yesterday,” said Rohon Sarkar, the association’s secretary. “Unless the issue is resolved, we will not open our establishments.” Sources said Darjeeling district Congress president and Matigara-Naxalbari MLA Shankar Malakar would hold a meeting with the bar owners tomorrow. He is known to have backed the Mancha and protested against such bars. The Darjeeling district magistrate, M.K, Gandhi, said the district administration gave permission for only singing in bars. “We don’t allow live dance in bars. Permission is given for live singing with certain conditions.” Source: The Telegraph

Tea prices remain firm as arrivals ease at Kochi auction

Kochi Sept 3: Prices remained firm at the Kochi Tea Auction even as arrivals have begun to ease on account of heavy August rains in the tea growing regions of South India. There was 9,87,000 kg of dust and 3,41,000 kg of leaf tea on offer at the auction. Prices remained firm to dearer at the CTC dust auction, particularly the good liquoring and medium grades. Plain grades quoted around last week’s levels. AVT, Tata Global, Hindustan Unilever and Kerala State Civil Supplies Corporation were active on good liquoring grades. Loose tea traders lent useful support. Upcountry buyers and exporters remained subdued. Primary grades were steady at the orthodox dust auction while secondaries inched lower. There were several withdrawals from the orthodox dust auction market. Leaf Auction High grown grades remained firm to dearer at the orthodox leaf auction following quality. Other Nilgiri teas tended to ease. Medium bolder broken and whole leaf grades were firm to occasionally dearer. Most other orthodox leaf was irregular and sometimes quoted lower. Traditional exporters, including those to CIS countries were active. Fannings were absorbed by tea bag manufacturers and exporters. Upcountry buyers lent useful support on whole leaf grades. HUL was not active. There was good demand at the CTC leaf auction where good liquoring grades were firm to dearer. Others grades were irregular to easier. Exporters were active on medium/plainer grades. Superior grades were absorbed by upcountry buyers. HUL lent fair amount of support. Top Prices Pasuparai FD fetched the top price at the dust auction at Rs 142 followed by Pasuparai SFD at Rs 133, Injipara SFD and Injipara SRD at Rs 129. At the leaf auction Pascoe’s green tea fetched the top price at Rs 289 followed by Chamraj OP and Chamraj FOP at Rs 206 even as Havukal OP fetched Rs 205. Source: The Hindu

Tea tragedy on record - Figures on fingertips, Partha lists garden woes

Calcutta, Aug. 26: A death-a-day human tragedy, economic perils and administrative apathy that are striking at the root of Bengal’s tea industry were given a statistical face today in the Assembly as figure after grim figure tumbled out.

Starting with the grimmest, industries minister Partha Chatterjee said 3,500 people died in the last one decade in north Bengal tea gardens because of malnutrition, putting on government record the nearly one-death-a-day figure known by all but admitted by none.

Neither the administration nor the visiting health staff in the previous Left Front government had admitted that the workers in the closed gardens of the Dooars and Terai were suffering from malnutrition, a symptom not associated with square meals but with starvation.

In response to a question, Chatterjee said: “This is on record, 3,500 garden labourers have died of malnutrition in the last decade. It has been quoted in the Supreme Court.”

An industries department official said the apex court got the figure after social activist Anuradha Talwar carried out an on-the-spot survey in the closed tea gardens in north Bengal after instructions from the court in 2003.

“We are trying to improve and intervene in areas where it is practically possible…, starting from assuring payment of wages to the improvement of tea quality. We have to shift from mass production to producing tea of distinction, of which we have a history that we are proud of,” he said.

Chatterjee said tea production in the state has increased by 19 per cent in the last decade but export has come down as quality has been hit, a charge that planters denied.

In 2001, Bengal’s tea production was 192 million kg while in 2011, it had grown to 228 million kg, the minister said. “There had been a 19 per cent increase in the state’s production in the last decade, while the country's production over the same period had increased by 14 per cent,” he added. “Exports, however, had come down over this period because of a fall in the quality of tea,” the minister told the House.

Chatterjee’s observation on quality comes at a time when the industry has been trying to grapple with workers’ shutdowns and strikes for revision of wages.

The minister also said an eight-year-old recommendation that the government and the planters share the social cost of the workers would be looked into.

Planters in north Bengal said Chatterjee’s remark on quality influencing export must have been on CTC tea, which is grown in the foothills or the Dooars and the Terai. “For, the demand for Darjeeling tea has been consistent in the international market,” said K.K. Mintri, a planter from Siliguri.

Mintri, however, said the export of CTC tea has come down because of higher prices that Indian manufacturers are forced to demand from international buyers as a result of the higher cost of production.

“CTC tea has good competition from countries like Vietnam and Kenya which produce similar tea and can afford to sell at lesser prices,” Mintri said. The planter said buyers for CTC are mostly from Iraq, Iran, Pakistan and Russia, unlike Darjeeling tea, which is exported to European countries and the US.

U.B. Das, the principal adviser to the Indian Tea Planters’ Association, claimed that other countries could produce tea at lower cost because the fringe benefits and wages provided to workers there were less than what was given here.

“The only way to slash prices in international market is to bring down the cost of production. This will not be possible unless the state and the Centre shoulder some of the responsibilities,” he said. The workers here get a daily wage of Rs 67 and benefits like PF, gratuity housing, ration, free medical aid and education facilities for children.

The trade wing of Chatterjee’s party, Trinamul, which has been trying to curb bandhs in gardens, has demanded Rs 130, the same amount paid under the 100-days central job scheme. The rural job scheme has been often blamed by planters for absenteeism among workers.

Asked by Congress’s Alipurduar MLA D.P. Roy if an inter-ministerial committee recommendation in 2003 to the government to share the social cost of workers with the planters had been considered, the minister replied it was still pending. “But steps are being taken — a separate secretariat is being set up in north Bengal, and experts are being consulted. The situation will change soon,” he said.

Source: The Telegraph

Drop in prices to hurt tea companies' H2 bottom line: Indian Tea Association

KOLKATA: The second half of financial year 2011-12 does not appear to be bright for tea companies. With prices sliding Rs 10-15 per kg and the rate of interest going up by 3% on an average, tea companies' cash flow is under pressure.

CS Bedi, chairman of Indian Tea Association, said: "The interest rate has gone up by 2.5-3% on an average. This is putting pressure on the margins of tea companies as the cost of production is going up. Moreover, over the last fortnight tea prices have shown a drop, which is a matter of concern for all tea companies. This is bound to have an effect on the bottomline of tea companies in the second half of the current financial year."

India's tea production rose by 10% to 114.70 million kg during June 2011 on the back of a higher output in Assam and West Bengal. The country produced 104.03 million kg of the brew in the same month last year, according to Tea Board data.

Production in Assam, which accounts for more than 50% of the tea produced in the country, rose by 24% to 62.82 million kg in June 2011 from 50.70 million kg in the year-ago period. Similarly, output in West Bengal rose by more than 2% to 25.95 million kg from 25.34 million kg in the year-ago period. During the January-June period of the 2011 calendar year, tea production rose to 358.32 million kg from 338.96 million kg in the corresponding period of 2010.

With an improvement in production this year, arrivals at auction centres have increased suddenly. "July and August are the two months when generally arrivals for auctions improve. Last year, the scenario was different. Production had gone down due to a pest attack and excessive rains. This had pushed up prices last year. This year, the prices are not going up as last year's levels.

In some cases, there is a drop in prices. However, quality tea are fetching good prices," said J Kalyansundaram, secretary, Calcutta Tea Traders Association. Orthodox tea producers have suffered the most this year as they cannot export their produce to Iran, a major market, due to a payment problem. "Orthodox teas are selling at price which is lower than by Rs 10-15 per kg," said Bedi.

Economic Tmes

Tea industry demands 'national drink' status for tea

The tea industry of Assam, a state which is synonymous in the outside world with its tea, has asked the government to declare the beverage as the ‘National Drink’ of India. It also wants tea to be declared as the ‘State Drink’ of Assam.

“In view of its glorious past and in anticipation of its bright future, we sincerely feel that there is a genuine case for tea to be declared as the ‘State Drink’ of Assam. The logical step forward would then be to persuade the government of India to declare tea as the ‘National Drink’ of India,” said Bidyananda Barkakoty, Chairman of North Eastern Tea Association (NETA).

For India, which is the largest consumer of tea and the second largest producer of tea (till 2005 India was the largest producer), declaring tea will have an “integrating effect”, feels Barkakoty. India consumes more than 80 per cent of its domestic production and 20 per cent of the world’s production.

NETA had yesterday submitted a memorandum to Assam Chief Minister Tarun Gogoi in support of its demand. In the memorandum, Barkakoty has put forth at least 33 reasons why tea should be declared as the ‘State Drink’ of Assam and the ‘National Drink’ of India.

“If whiskey can be the national drink of Scotland, sugarcane juice the national drink of Pakistan, vodka the national drink of Russia, tequila the national drink of Mexico, why can’t tea be the national drink of India,” asked Barkakoty.

Barkakoty feels that the tea industry in Assam, with its 180 years of glorious history, has already passed through many turbulent periods and is quite vulnerable to recession. Since the livelihood of millions of people is associated with the industry, it needs adequate support to protect it from being threatened.

He feels that the proposed new status of this beverage would provide a major impetus to the brand building exercise of Indian tea. “Symbolism apart, the declaration will be a good idea for bolstering the marketing of Indian tea. Tea is now accepted as a health drink world over. This fact coupled with the ‘State Drink’ and ‘National Drink’ tag would also attract the large youth population of the country towards this health beverage,” said Barkakoty.

Historically, Assam is the second commercial tea producing region after southern China. Southern China and Assam are the only two regions in the world with native tea plants. Assam produces more than 55 per cent of India’s total tea production and contributes 13 per cent of global tea production.

Business Standard

S. India tea prices surge on global shortage

Kochi, August 17:

With a persisting shortage in the global market, both Indian and global tea prices have been firming up. In South India, average price realisations have been up during January-June 2011, with the number going up to Rs 71.17 a kg.

Mr Peter Mathias, Chairman, UPASI Tea Committee said that it was interesting to note that despite a decline in production in South India, quantity sold in auction centres was higher by 2.3 million kg (mkg) and the supply in the pipeline would be relatively dry. Given the demand supply gap, he expected the prices to remain buoyant.

In addition, the quantity on offer at the orthodox category has come down very sharply and increasing export demand for orthodox teas is expected to have a very positive effect on prices. This comes in the backdrop of a lower Kenyan crop by 34.5 mkg which has led to a shortage in supply during the first six months of the current year. Although this was partially compensated by higher North Indian crop of 23.9 mkg, the global deficit stood at 20.6 mkg.
Less exports

South Indian crop, meanwhile, was down by 4.6 mkg, the fourth year in a row of lower South Indian production. The increase in price realisation from South India was despite lower exports of 9.7 mkg. The lower export from India in general, and South India in particular, was on account of disturbance in West Asia and North Africa region. As the situation in this region is improving, exports are poised to look up, taking up the prices along with it.
Tight supply

A close scrutiny on auction offering at major auction centres such as Mombasa and Colombo suggest that quantity offered at the forthcoming auctions are bound to be very low, suggesting a tighter supply position in the short run. The Kenyan offering at Mombasa Auction has declined from 6.5 mkg in the 23rd sale to around 4.1 mkg in the 31st sale.

Similarly, in Sri Lanka also the quantity offered has shown marginal decline, falling below the 7-mkg mark. With the Iran payment problem being sorted at least partially, it appears that exports are bound to pick up and South Indian tea sector looks forward to a very positive second half.

The Hindu

Tea output set to fall by 120 m kg this year

KOLKATA: The Indian tea industry is heading towards a shortfall of 120 million kg this year. Lower domestic production, coupled with a drop in Kenyan output of 37 million kg, has already pushed up tea prices in India.

Global prices have also appreciated in the last four months. All these factors have pushed up the profitability of tea companies in the first quarter of the current fiscal year.

Tea producers say the deficit in the domestic market will be 120 million kg this year. This is despite the fact that the weather condition is generally good this year.

India had produced 960 million kg of tea last year and there was a production shortfall of nearly 30 million kg. The carryover deficit in 2010 was 60 million. In all, the deficit in 2010 was 90 million kg.

"With consumption growing at a rate of 3-3.5%, there is a need for an additional 30 million kg of tea this year to meet this demand. This means that there will be an overall deficit of 120 million kg this year," explained Aditya Khaitan, managing director of McLeod Russel India.

"Tea companies are expecting that FY12 will be a good year performance-wise. Tea prices are already on a firm note. The shortfall in Kenya by 37 million kg is also pushing up global tea prices and Indian tea exporters are leveraging this," said CS Bedi, managing director of Rossell India.

For instance, McLeod Russel's teas are being sold at a premium in India as well as in Mombasa auctions which have jacked up its net profit by 98% to Rs 37.33 crore in the first quarter of FY12 from Rs 18.85 crore in the first quarter of financial year 2011. "Our teas are fetching Rs 15 -16 more per kg compared to previous year. Teas grown in our Ugandan and Rwandan estates are fecthing 50-60 cents more per kg at the Mombasa auctions," said Khaitan.

AN Singh, managing director & chief executive officer of Goodricke Group, said: "The market sentiment is strong and teas are expected to fetch better prices. This will have an imp- act on the profitability of tea firms. However, one has to see whether the cost of production does not go up in the coming mo-nths. Export enquries are strong and tea companies are hoping to have better forex earnings."

The Economic Tmes

Dhumal writes to Centre for revival of Kangra Tea

Himachal Pradesh Chief Minister Prem Kumar Dhumal has asked the Centre for a special package to revive the traditional Kangra Tea — one of the oldest variety of tea grown in the country since the British period.

In this regard, the state government has written to Union Minister of Commerce and Industry Anand Sharma and also Tea Board of India several times, but has not received any satisfactory response.

Opposing the move to release out the tea gardens, Dhumal had reiterated the state government’s resolve to rejuvenate Kangra Tea since the tea planters were in real distress and needed immediate help. “Leasing out the tea gardens either to a state agency or a professional company will not be acceptable to the tea planters. Instead, it will be in their interest to link them with some good private company for marketing purposes and ensure better return for the produce,” the chief minister wrote. Such a move would motivate tea planters to adopt better practices and produce good quality tea, he added.

Dhumal also told the Centre that the state government had sent its proposal for the revival of Kangra Tea in May 2010, which included rejuvenation and re-plantation in the existing active and abandoned areas, besides identifying new potential areas. The proposed package has several other components too.

Indian Express