New Delhi: India's tea production is expected to grow by five percent to 1,180 million kg in the 2013 calendar year on account of good monsoon, a senior official of Wagh Bakri Tea Group said on Wednesday.
According to Tea Board, the country had produced 1,126 million kg of tea last year, he said in a statement.
"For the full year, we expect growth of around 5 percent, which will translate into production of around 1,180 million kg of tea," packaged tea manufacturer Wagh Bakri Tea Group Executive Director Paras Desai said.
The overall tea supply in the country would be about 1,200 million kg this year taking into account imports of about 20 million kg, he said.
More than 900 million kg of tea would be available for domestic consumption even if exports rise by 15 percent from over the last year, he added.
Desai further said that though tea production in south India has gone down in September and October, production figures are expected to improve in the next two months due to good rains there.
Till August of this year, tea production rose by 6.2 percent to 705 million kg as against 664 million kg in the same period last year, he said, adding that the growth in tea production so far has been above the compounded annual growth rate (CAGR) of last three years.
However, production growth in traditional tea growing regions of Assam and Terai so far has been good, he added.
The Ahmedabad-based packaged tea major also said prices of quality teas have risen over last year's level despite higher production. The Tea Board has taken an initiative to popularise tea across the country to address excess supply.
Wagh Bakri Tea group, the country's third largest packaged tea company, has a current turnover of over Rs 750 crore. It distributes 32 million kg of tea annually and exports to 33 countries.
The company's brand a strong market position in Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, and Goa and has recently forayed into the markets of Delhi and Hyderabad.