According to Kochi's leading tea traders, Forbes Ewart and Figgis, a quantity of 38.9 million kg was auctioned during January to March 1998 compared to 32.8 million traded in the same period last year.

WC Thomas of Forbes Ewart and Figgis said that the world crop during January-March 1998 is up 79.2 million kg so far against the previous year's production. Tea production in south India is up by 8 million kg and north Indian tea by 20 million kg.

During January to March 1998, tea production in north stood at 36.7 million kg compared to 16.1 million kg during the same period last year. South Indian tea production stood at 46 million kg during January-March '98 against 38 million kg in January-March '97. Cumulative Indian tea production is up by 28 million kg this year.

Kenya has come back into the teamarket with a good production this year at 86.4 million kg against 44 million kg in the last year in the January-March period. The increase in production stands at 42.4 million kg. The Sri Lankan tea produce went up by 5.5 million kg from 37.9 million kg in January-March 1997 to 43.4 million kg during the same period this year. Production in Malawi has gone up by 2.5 million kg from 17.7 million kg in January-March 1997 to 20.2 million kg this year.

The prices have come down sharply and suddenly by about Rs 30-35 on a kg averaging between Rs 70-72 a kg for leaf and dust combined compared to the prices prevailing during the end of last year. The price during the last auction averaged Rs 69.27 a kg. According to WC Thomas, tea prices are expected to drop till July. But as there has already been a sharp drop, the prices are expected to remain stable at the lower end because of good production.

He said there was indication of a good crop for May and June in Kerala because of a few showers that the State hashad in the last few weeks.Scarcity of tea in the global market in 1997 had resulted in the Indian tea doing well. Low-scale productions in tea-producing countries like Kenya and Malawi had triggered off the boom for Indian tea which saw a record output of 805 million kg in 1997.

The prices also had reached over Rs 100 a kg for a considerable period which made the tea companies bring out low-priced small consumer packs specially for the common man.