Tea output to decline by 80 mn kg in 2020: FAITTA
   Date :26-May-2020

Tea output _1  
 
 
Business Bureau :
 
India’s tea output may decline by 80 million kg in 2020, resulting in a loss of Rs 2,000 crore, due to the lockdown, according to an industry body. Tea prices at farm gates have increased by Rs 60-70 per kg as the nationwide lockdown to control COVID-19 outbreak has severely affected work at tea plantations, the Federation of All India Tea Traders Association (FAITTA) said in a statement. However, retail prices have not increased, it said.
 
“The annual tea production in India is around 1,300 million kg. However, because of restrictions imposed during the lockdown, fewer workers were deployed in tea plantations, affecting production in March and April,” FAITTA Chairman Viren Shah said in the statement. “We expect tea production in 2020 to decline by around 80 million kg as a result, which would translate into a loss of Rs 2,000 crore to the tea industry,” he added.
 
Tea consumption in India is estimated at around 1,080 million kg per year, that is around 90 million kg in a month. The out-of-home tea consumption, which is driven by roadside tea stalls, restaurants, cafes, and hotels, offices, and industries, is around 40 per cent, that is 36 million kg per month. However, since all of these were closed for nearly two months, tea consumption would have declined by over 70 million kg. “Sales data of tea packers operating in the retail market confirms the significant decline in out-of-home tea consumption,” Shah said. Consumption of tea at home would have increased during the lockdown, but it would not be adequate to compensate for the fall in out-of-home consumption.