India sets new record in tea production in 2015-16, exports have also increased significantly

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tea production

The Indian tea industry notched up a new record during the 2015-16 financial year as it marked the highest-ever production in a financial year at 1233.14 million kg (mkg). Not only that, but the country has also surpassed the 230 mkg mark after a span of 35 years, and has been able to export 232.92 mkg valued at Rs 4493.10 Crore.

On Friday, the Tea Board of India released the whole data and stats for this financial year and according to those stats total domestic production of Tea grew by 3% or 35.96 mkg, compared with the last fiscal year, with North India contributed the most. In this region alone the production grew by 52.74 mkg or 5.52%, compared to the 2014-15 fiscal period. Amidst this success, the production in the Southern India has taken a dip and declined by 16.78 mkg or 6.95%. The main reason behind this declination is the adverse climatic conditions and labour issues in Kerala.

The production in the tea estates has also been increased by 1.62 % all over the India on the while on the other hand the production of Bought Leaf Factory (BLF) sector increased by 5.81% in the last fiscal year, marking a significant contribution of 33.85% of the tea grown by the small by tea growers. Midst the major tea growing states, the small growers of the Tamil Nadu topped the production chart with 53.16%, followed by West Bengal at 40.4% and Assam at 27.55%.

Among the entire 1233.14 mkg production, crush-tear-curl (CTC) production led the production as the previous years, constituting the lion’s share of 90.93% of the total tea production at 1121.35 mkg, more than 23.19 mkg of last year’s production. The Orthodox production has also been increased and took an upward turn by 8.47 mkg constituted 7.51% or 92.60 mkg of total production. The production of Green tea also saw an impressive growth in this fiscal year by 4.30 mkg, which accounted for 1.56% of the produce nationally.

The patterning body of the Indian tea industry also showed the data that average price realisation and quantity sold at tea auctions throughout India also headed north by 8.05% and 17.82%, respectively, compared with 2014-15 fiscal year. In the Northern part of the country, quantity sold in auction centres increased by 39.31% with an increment of 3.27% in average price realisation, whereas in the South Indian auction centres the quantity of selling tea increased by 26.22% with an increment of 29.01% in average price realisation.

As we have said earlier, India broke its 35-year record on the exports front. The last time India breached the 230 mkg mark in the financial year 1980-81. If we compare with the 2014-15 financial year, the quantity of tea exports increased by 33.84 mkg or 17%, while in value terms, the increase is by Rs 669.46 crore or 17.51%.

Russia grabbed the top spot and became the main exporter with 48.23 mkg increasing by 22.41%, followed by Iran where exports marked at 22.13 mkg (22% increase), and Pakistan at 19.37 mkg (27.43 % increase). Germany, Bangladesh, UAE and Poland also played a significant part in the surge in exports.

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