India Intelligence Report

 

 

Record Tea Output but Shortage Predicted

 

The India Tea Association (ITA) estimated that India will continue to be the largest tea producer with 930 million kilograms (mkgs) (2 mkgs more than last year) but predicted a shortage of 27 mkgs in India due to growing domestic and international demand.

 

 

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The India Tea Association (ITA) estimated that India will continue to be the largest tea producer with 930 million kilograms (mkgs) (2 mkgs more than last year) but predicted a shortage of 27 mkgs in India due to growing domestic and international demand. ITA officials say that shortage of production early in the year has caused a cumulative backlog and promises to “import more tea” to meet domestic and international demands estimated at 1000 mkgs (up from 972 mkgs) from Indonesia , Vietnam and Nepal .

Tea producers from Assam and North Bengal have been falling because of lack of investment in tea farms that have ageing bushes. The industry will replant 50-year old bushes in hundreds of acres which will take 5-7 years to gestate so the demand to supply difference will grow. Domestic demand is estimated at 805 mkgs (up from 780 mkgs) and expected to grow at 3.3% every year. India imported 16 mkgs last year.