2009 has opened on an encouraging note for the Indian tea industry. In keeping with the agro-climatic lineaments, production in North-East will hit the market only by April. But, the high-grown winter teas from the South are premium products in the market till then.

In the Nilgiris, the largest tea growing district in the South which also accounts for 10 per cent of India's overall production, market has been buoyant in January and February. As prices ruled higher than last year even as the volume offered for sale was more, producers were jubilant that their overall income was rising.

At the auctions of Coonoor Tea Trade Association (CTTA), where India's largest volume of teas from the small-scale sector are auctioned simultaneously with those from corporate sector, new price-records were created.

In January, CTTA sold 4.07 million kg against 3.73 million kg in January 2008. On an average, every kilo fetched Rs 16 more to rule Rs 68.87. Consequently, the overall earnings increased to Rs 28.24 crore from Rs 19.61 crore. This means, the trade has earned Rs 8.63 crore more in just one month, marking an increase of as much as 44 per cent.

The increased earnings have come in respect of both crush-tear-curl (CTC) teas which are manufactured mostly by the small-scale sector and the orthodox teas, mostly manufactured by the corporate sector. CTC teas form the bulk of the sales and are consumed mostly within the country. A volume of 3.82 million kg of CTC teas were sold against 3.46 million kg sold in January 2008. The average price increased to Rs 68.69 a kg from Rs 52.29. More than 60 brands of CTC teas from small-scale sector fetched Rs 100 or more per kg. Darmona Estate, auctioned by J Thomas & Co., and Homedale Estate, auctioned by Global Tea Brokers, consistently topped earning impressively high prices.

Orthodox teas are mostly exported. The volume of orthodox teas sold increased from 2.70 lakh kg to 2.77 lakh kg. The average price rose to Rs 71.33 a kg from Rs 56.21. About 20 brands fetched more than Rs 100 a kg. In February, Curzon Nilgiri Plantations Co., Ltd., created a new record when its orthodox dust grade BOPD, auctioned by Carritt Moran and Co. P Ltd., fetched Rs 190 a kg. This was all-time high price among orthodox teas of any factory sold in CTTA auctions. It was also the highest price fetched by the factory since its inception in any auction centre. This tea came under a unique category representing a full-bodied cup with impressive level of strength and briskness reflecting prominent winter high-grown characteristic. There was strong competition to bid for the same. Finally, Kushal Tea Co., Coonoor, bought it for Rs 190 a kg for the Hyderabad market.

Curzon BOPD had been creating records in 2009. A fortnight before this all-time high price, it created a record at Rs 157 and the following week, it surpassed its own record at Rs 163. Subsequently, it has once again broken its own record.

If the overall growth trend seen in the beginning months of 2009 continues, the year could well end up with the trade netting an additional earning of around Rs 100 crore over 2008. This is significant on two counts - first, an addition of Rs 100 crore by itself is a massive growth for a segment of tea industry; second, 2008 was an exceptionally good year for Nilgiri tea with the CTTA auctions posting an increase of Rs 158 crore over 2007, marking a whopping growth of more than 97 per cent. It is this added-up earning that is being significantly surpassed in 2009.

The additional income lies spread amidst the factory owners, growers, traders, brokers, agents, warehouse keepers and workers. Hence, all segments of the industry stand to gain.

For the country as a whole also, 2008 was an impressive, good year. Production rose by 36 million kg over 2007 to total an all-time high level of 981 million kg. In this, South India gained 27 million kg to produce 247 million kg. All States here produced more tea than in 2007. North India gained 9 million kg to produce 734 million kg.

The higher production helped exports to rise unmindful of the global meltdown. Interestingly, a higher volume of Indian teas fetched a higher price in the global market in 2008, compared to 2007. Tea exports rose to 196 million kg from 179 million kg in 2007. On an average, every kg fetched Rs 15 more to rule Rs 116. Consequently, Indian tea exports fetched Rs 2282 crore in 2008 against Rs 1810 crore, marking an increase of Rs 472 crore or 26 per cent in just a year.

Government has not yet announced export target for 2009.