Tea production in India, the world's largest producer, rose 8 percent to 533 million kgs between January and August from 493 million kgs in the same period a year ago, the state-run Tea Board said on Friday.
It said tea output grew because of favourable weather conditions in the eastern states of West Bengal and Assam, which account for almost 80 percent of India's production.
India's tea production in the year to March 2005 fell 2.3 percent to 830.92 million kg from 850.70 million a year before. Tea Board officials said exports in January-August fell to 103.5 million kgs from 121.8 million in the same period of 2004. Exports have been falling since May, primarily due to lower demand for Indian tea in the traditional markets of Russia and the Commonwealth of Independent States countries, officials say.
Dogged by labour trouble and falling international prices, the Indian industry faces a tough challenge from Sri Lankan and Kenyan producers eating into its traditional markets. Leading Indian tea companies include Tata Tea Ltd and Hindustan Lever Ltd, majority owned by Anglo-Dutch Unlived Plc.
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