A sharp decline in exports had affected the overall tea price situation in the country, according to United Planters' Association of Southern India.
India's tea production during January-May this year was 224 million kgs compared to 188 million kgs during the same period last year, UPASI Secretary General, Ullas Menon, said in a release New Delhi on Friday.
However, in contrast, exports during the same period this year declined to 45 millions kgs from 66 million kgs last year and the decline has been especially sharp in the case of South Indian tea - from 38 million kgs to 21 million kgs, he said.
As a fall out of this, there was 47 per cent increase in the domestic retention of tea of 179 million kgs during first five months, compared 122 million kgs last year, Menon said.
The sharp decline in exports, mainly due to a set back in shipments to Iraq and lower purchase by Russia, has seen orthodox tea prices rolling down the slope and the premium such teas used to fetch over CTC teas had now vanished, affecting the overall price situation.
However, CTC prices were higher by 4 per cent, he said.
The present price situation was primarily due to the supply-demand imbalance and not due to Tea Marketing Control Order or the directions issued by Tea Board, as has been made out in certain quarters, Menon claimed.