Tea industry forecasts output drop in 4Q despite State assurance of sufficient fertilizer stocks

• Industry forecasts 10-15 percent drop in  tea output in 4Q this year in case of  agrochemical shortage
• Plantation Minister assures govt. has sufficient stocks having imported 49,000 MT 
• of fertilizer

By Nishel Fernando 
Despite the government’s assurance that the country is in possession of sufficient fertilizer stocks for tea plantations for the remainder of the year, the tea industry forecasts 10-15 percent hit on tea output in the fourth quarter of this year if a shortage of agrochemicals occur. 

The Co-Cabinet Spokesperson and the Minister of Plantation, Ramesh Pathriana during the weekly Cabinet briefing held on Tuesday assured that the government has sufficient fertilizer stocks for tea plantations for the remainder of the year having already imported 49,000 MT of fertilizer for the industry. 

However, he acknowledged some delays in mixing them and distributing among the growers.  

Tea industry players fear a loss of around 10-15 percent drop in crop in the fourth quarter, if they couldn’t apply necessary agrochemicals within 1-2 months.

“We only have a little remaining and we are running out of them (fertilizer) fast. We will probably run out of them by this month or early August. 

“If we don’t apply the required agrochemicals on time, we stand to lose around 10-15 percent of the final quarter’s crop this year,” a leading tea planter told Mirror Business on the grounds 
of anonymity. 

As agrochemicals comprise various chemical compounds including pesticides, adjuvant, growth regulators and mineral fertilizers, tea growers opine that it’s not pragmatic to solely rely on organic products alone.

“The government will have to make a pragmatic policy decision on this. We remain very hopeful. Of course, we can integrate carbonic materials in the agrochemical mix. Already several proposals have been submitted in this regard,” the tea planter added.

During the first five months of the year, tea output rose by 31.6 percent YoY to 134.7 million kilos backed by favourable weather conditions.

However, tea sale prices continued to decline. In June, national sale average dropped to Rs. 586.51 (US$ 2.98) indicating a Month-on-Month (MoM) decrease of Rs. 23.01 and decrease of Rs. 26.16 (US$ 0.24) on YoY basis.

In the five months of the year, cumulative exports totaled to 109.99 million kilos, showing Year-on-Year (YoY) increase of 09.59 million kilos. The tea export income rose to Rs.103.07 billion during the period recording YoY of increase of Rs.18.36 billion.