1. Commodity News

Kerala’s Tea Production Drops by 36 Percent in First Quarter (April to June)

Abha Toppo
Abha Toppo
Tea output

Kerala’s tea output has dropped by 36% during the first quarter (April-June) of the current season due to prolonged drought and absence of sufficient rainfall. According to Industry sources, the reason for the drop in production is the vagaries of environment in the period between February & June.

As per the figures available with the Association of Planters of Kerala, the tea production during the period between April & June 2019 stood at 21.30 million kg in comparison to 25.25 million kg in the corresponding period last year (2018).

Climate change has actually impacted the production cost, which was gradually going up. A higher input cost also pushed up the price beyond manageable levels, according to sources in the sector. The present production cost hovers well above Rs. 150 per kg, whereas in the previous year, the average auction price realisation per kg was below Rs. 105.

tea kerala

Sources told that the difference between the cost of production & price realisation has been adverse.

Generally, the first flush season in Kerala begins from the second half of April and continues till first half of June. And the second flush season starts from the second half of September and goes on till first half of November.

Change in weather seems to have an irreversible impact on tea plantations. The weather cycle in tea growing regions is quite unprecedented and it has caused serious damages to the cropping pattern.

Furthermore, abnormal weather conditions in and around Munnar between December 2018 and February 2019 also caused crop loss that is estimated at around 15 to 20%.

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