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Indian tea output slips in 2002
Monday, 13 January 2003, 20:30 IST
KOLKATA: India's tea production in 2002 is slated to witness a slight fall, industry sources said Sunday.
The tea industry, passing through an unprecedented cash crisis, can hope for little cheer this year too as production is expected to fall from 854 million kg last year to 825 kg.
According to Tea Association of India (TAI) sources here, the country's exports could, however, witness a marginal rise -- from 170 million kg in 2001. They did not provide any figures though.
India had set an export target of 205 million kg in 2002 but it is still unclear if the goal has been achieved.
Tea exporters are, however, hopeful of achieving the target because of increased exports to countries like Iraq, the United Arab Emirates (UAE), Britain, Poland, Germany and the Netherlands.
TAI sources said the country's international market had shrunk to just 16 percent from 34 percent in 1980, mainly because of competition from China, Sri Lanka and Kenya.
"India will have to export at least 250 million kg to establish a clear domination in the field," a source said.
"The industry is passing through a cash crisis for a third year in a row, mostly because of the fall in tea prices," the source said.
Since the Indian industry has the highest production cost among all industries, the price dip has had deep effects.
The tea industry had been expected to recover after the government allowed 100 percent foreign direct investment in the sector last year. But the sop seems to have failed to bring in investments.
The industry in West Bengal is feeling the pinch due to the new wage rates signed in February 2001 that has a retrospective component. On an average the wages have gone up by 
11.10 -- which works out between nine and 10 percent at a compounded rate.
The Tea Board, a government agency, has hired two market research firms to survey tea consumption patterns in countries like Chile, Russia, Syria, Saudi Arabia, UAE and Germany with a view to increasing exports.
Source: IANS
11.10 -- which works out between nine and 10 percent at a compounded rate.
The Tea Board, a government agency, has hired two market research firms to survey tea consumption patterns in countries like Chile, Russia, Syria, Saudi Arabia, UAE and Germany with a view to increasing exports.
Source: IANS