Trade with Commodities: Rains throw a party for Darjeeling planters

Thursday, April 30, 2009

Rains throw a party for Darjeeling planters

Although Late Rains Have Arrived, Industry Fears Crop Losses Till April Will Be Around 35 M Kg

AS THE hills north of Siliguri slipped into poll mode on Thursday, rain lashed the tea estates of north Bengal and Darjeeling bringing much-needed cheer to the country's top tea producers. The protracted dry spell from end-February has severely hurt production of first flush tea, which attract premium rates in both domestic and global markets.
    "According to rough estimates, tea production in the north (north Bengal and Assam) has been down by 20 million kg in March and April 2009 due to a prolonged dry spell. Though it has started raining in Dooars, tea bushes need more rain to produce good quality second flush teas. Along with north Bengal, it is also finally raining in Assam. The onset of rains after such a long dry spell has brought relief to the tea industry," chairman of Indian Tea Association (ITA) Aditya Khaitan said.
    The ITA chairman was speaking to ETon a day when polls kicked off in Coochbehar, Alipurduar, Jalpaiguri and Darjeeling in the first phase of three-tier general elections in West Bengal.
    Incidentally, the Dooars region encompasses the plains of Darjeeling district, the whole of Jalpaiguri, the upper reaches of Coochbehar in West Bengal and the districts of Dhubri, Kokrajhar, Barpeta, Goalpara and Bongaigaon in Assam.
    The tea industry estimates crop losses till April will be around 35 million kg. "Southern region has also lost some 15 million kg due to the drought-like situation," the ITA chairman said. According to figures released by Tea Board, global tea production was down 38.1 million kg in the first two months of 2009.
    At present, the total shortage in India is nearly 60 million kg. "There is a carry forward shortage of 25 million kg, which means there was a demand supply gap of 25 million kg. If we add up this year's production losses of 35 million kg with this 25 million kg, the shortfall comes around 60 million kg," Mr Khaitan said.
    Rains have also brought cheer to Darjeeling tea industry, which has been hit not only by the dry spell but also the continuous agitation of Gorkha Janmukti Morcha (GJM). Due to the dry spell, Darjeeling has lost the production of its first flush teas, which is sold at a premium in overseas markets. "We are expecting a shortage of 30% in first flush teas. Fortunately, the weather has improved in Darjeeling and it has started raining. We will not be able to recover all of the first flush teas. But we are hopeful production of second flush teas will improve," said Sanjay Bansal, chairman of Darjeeling Tea Association (DTA).