Tea firms in Assam suffer output drop in June

Kolkata, July 7

Major tea companies, mostly producer-exporters, having gardens in Assam suffered a huge production loss in June due to excessive rainfall and pest attack.

Rossell Tea suffered a production loss of more than 40 per cent at three lakh kg, McLeod Russel suffered a 21 per cent fall at 7.4 mkg (million kg), Assam Company 25 per cent at 1.2 mkg, Goodricke 20 per cent at 3.6 mkg, Warren Tea 25 per cent at 1.3 mkg, Andrew Yule 20 per cent at one mkg and Apeejay Tea 37 per cent at 1.3 mkg.

Tea Board statistics show that the May production in the North was down 3 mkgs vis-à-vis the same month of the previous year, mainly due to the decline in Assam crop to the extent of 3.5 mkgs. The drop in Assam was to some extent made up by the slight improvement in the Dooars crop.

Outlook

In June, according to data available with the Indian Tea Association, about 90 per cent of its reporting membership showed a further decline of almost six mkg, largely led by the Assam region. The outlook for July as reported by wide segments of the ITA membership too appears to be poor.

Inquiries reveal that between January and June, the cumulative rainfall in key tea-growing areas in Assam was substantially higher than that in the same period a year ago. Thus, in Dibrugarh circle the rainfall was 73 per cent higher, Margherita circle 75 per cent, Panitola circle 91 per cent, Moran circle 53 per cent and Doom Dooma circle 119 per cent. Extremely wet weather and inadequate sunshine impeded photosynthesis leading to sharp drop in the crop.

Tea Mosquito bug

Large tracts of tea growing areas have also been severely affected by Helopeltis (the pest Helopeltis Thievora), a major tea mosquito bug seen across the Northeast. The problem has been compounded by the inability of the producer exporters to go in for large-scale spraying given the extremely rigid pesticide residue levels required to be adhered to particularly for the European markets. While the production in North India up to May, that is, from January to May, was ahead by some five million kg vis-à-vis the same period of last year, the sharp decline in the production in June and a further likely decline in July might wipe out of the gains of higher production achieved up to May. There could be even deficit.

This might result in lower arrivals in the market with consequent pressure on prices in the coming months, according to tea industry sources.