North India tea output dips 5 million kg in July

Tea production in North India is estimated to have declined by around five million kg in July as major companies, including the world's largest producer McLeod Russel, have reported significantly lower output.

"The decline of around two million kg as reported by the membership of the Indian Tea Association (ITA) could translate to an overall decline in the North Indian crop by around 4-5 million kg during July," the association said in a statement.

The production of North India has been hit due to a huge fall in Assam output since May 2010 only because of the heavy rainfall and “Helopeltis” pest attacks.

North India has produced 212 million kg to the country's total 338.9 million kg production till June 2010. It had produced 222 million kg in the same period in 2009.

Assam, the largest contributor to the overall production of North India, has produced 137.6 million kg in the January—June period of 2010 vis-a-vis 149 million kg in the same period in 2009.

"The crop situation particularly in upper Assam has again been severely affected with nearly all the major tea groups operating in that region namely Apeejay Tea, Assam Co, M.K. Shah Exports, McLeod Russell and Warren Tea reporting significantly lower production," ITA said.

McLeaod Russel has 47 tea estates in Assam. Production in Assam has been on the wane since May 2010 and it may fall further by two million kg during July, the ITA said, adding that the August output may also decline because of persisting adverse weather conditions.

"It is apprehended that with this decline and with the August outlook also reportedly uneven, it would be difficult to make up the already significant decline of 10 million kg which has been registered to date in North India," it said.

With only five months of the tea season left including the tail-end production of November and December, it is likely that the North Indian tea production may fall short of the 735 million kg registered in 2009, ITA added.

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