October 4, 2026

Tannoch Brae

Investment Banking Services

Tea output in 2020 crashes by 10% due to lockdown

The prolonged lockdown induced by Covid-19 coupled with adverse temperature, primarily in the North East, has pulled down the country’s tea manufacturing in 2020.

“Tea Board has now introduced the info for December and our compilation shows that in 2020, India’s tea manufacturing nosedived to one,255.sixty million kg (mkg) from one,390.08 mkg in 2019,” compiler of ‘Global Tea Digest’ Rajesh Gupta advised BusinessLine.

This marked a whopping shortfall of 134.forty eight mkg or 9.sixty seven per cent. This took place regardless of an raise in output in the South.

“North Indian manufacturing crashed to one,034.06 mkg from one,171.09 mkg, marking a massive decline of 137.03 mkg or eleven.70 per cent,” Gupta mentioned.

Assam ongoing to best the manufacturing desk but immediately after getting rid of 98.14 mkg to dip to 618.35 mkg.

“South India, on the other hand, produced two.55 mkg (one.sixteen per cent) far more to attain 221.54 mkg from 218.99 mkg in 2019,” Gupta mentioned.

However, this raise was considerably inadequate to offset the reduction in North.

In the South also, Tamil Nadu misplaced one.eighty two mkg to dip to 153.49 mkg from a hundred and fifty five.31 mkg.

In outcome, Kerala and Karnataka had been the only states which posted an raise in output.

Ordinary rate for inexperienced leaf

In the meantime, the Tea Board has announced that the district normal rate for inexperienced leaf of the tiny growers in The Nilgiris district in the course of February is ₹21.65 a kg.

Tea Board’s Government Director M Balaji mentioned this was preset based mostly on the consolidated auction rate of CTC teas from bought leaf factories in January.

The rate preset for January was ₹17.ninety four and so, this month’s rate is ₹3.71 or 20.sixty eight per cent far more than very last month.

As factories typically purchase four kgs of inexperienced leaf to manufacture a single kg of built tea, the growers will get all over ₹15 far more for each and every kg manufactured in February in comparison to very last month.

However, the rate is drastically far more in comparison to February very last year when the rate was ₹13.10. This raise of ₹8.55 marked a gain of as a lot as 65.27 per cent.

That’s why, in comparison to February very last year, growers will now get about ₹32 far more for each and every kg of manufactured tea this month.