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Rediff.com  » Business » Rainfall deficit hits tea production in Assam

Rainfall deficit hits tea production in Assam

By K Anurag in Guwahati
August 31, 2006 15:15 IST
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Less rainfall has severely hit tea production in Assam. The state's tea industry, which contributes about 50 per cent of the country's total production, has so far lost about 10 million kg till June.

Till June, tea production stood at 328 million kg compared to 338 million kg last year, thanks to the most erratic monsoon in 100 years. 

With only two months to go before the cropping season ends, the industry faces a difficult task to make up for the deficit.

However, the only silver lining is that the prices of tea in Guwahati Tea Auction Centre has gone up by an average of Rs 10 per kg compared to the price commanded last year. Last year, the average price of tea was about Rs 64 per kg. This year, the price at the auction market so far has been Rs 74 per kg.

India has the largest domestic market of tea in the world that deals in 700 million kg of tea every year.

The tea industry in Assam controls a share of Rs 3,500 crore (Rs 35 billion) in the Rs 5,700 crore (Rs 57 billion) industry.

According to the Regional Meteorological Centre, barring Mizoram, almost all north-eastern states suffered from deficit rainfall this year. The deficiency of rainfall in the region, estimated to be 25 to 30 per cent, has been attributed to disturbance in the normal orientation of monsoon.

As against the expected 88 cm of rainfall till July 30, Assam received only 55 cm rainfall.The deficiency in rain has caused draught-like situation in 22 out of total 27 districts of the state.

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K Anurag in Guwahati
 

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