Posted by admin | Posted in Coffee | Posted on 21-09-2011
Tags: coffee, design, food, shopping, tea, tea company, tea company albuquerque, tea company charleston sc, tea company clothing, tea company names
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Bumper Production Stimulates Tea Industry
Till a few months back, the Indian tea industry was struggling to meet the market demand on account of the steep fall in crop production and the subsequent shortfall recorded till May 2009. The SME tea exporting units were compelled to operate at lower capacity and had to witness eroded profit margins due to crop failure resulting from prolonged dry weather conditions.
However, with “rain gods” showing some mercy on the tea growers and farmers, the scenario for the sector has finally begun showing signs of improvement. Experts believe that bad days might soon be over for the tea industry. Tea growers and small tea manufacturing companies have gradually started witnessing a remarkable improvement in their crop production with the improvement in the weather.
Bringing cheer
The tea industry, which till May was facing shortfall in the crop production due to scanty rainfall, is witnessing ‘bumper’ and ‘unprecedented’ crop production in August.
“The crop production recorded since June has been satisfactory. The rise in tea production has helped small-scale manufacturers and exporters to meet market demand and overcome the shortfall it had posted till May,” said OP Agarwal, Chairman of AMBO Exports, a small-sized tea exporting company in Kolkata.
The bumper crop production witnessed over the last few months has also given a breather to small-scale tea manufacturers and growers, who were disappointed over the lack of stimulus in the Budget 2009-10 and were dismayed by the announcement of a hike in Minimum Alternate Tax (MAT).
“Although the Budget failed to bring any relief to the tea sector, but the steep rise in crop production over the last 2-3 months has served as a major booster for the tea sector. The bumper production has certainly brought cheer to the ailing SME tea manufacturers, who were on the verge of closure,” said Ishita Mukherjee, Director of Durga Tea Company, a small-sized tea producing company in Kolkata.
The bumper crop production has further made the tea industry optimistic of witnessing a higher price realisation by the end of the current financial year.
About the Author
David Parks is a well known author and has written articles on Investment Guide, B2B Portal, Trade Leads, suppliers, Manufactures and many other subjects.
Tea Company - You Keep Me Hangin On