India tea prices firming up.

INDIA--According to a report published on India News, India's recession in the tea industry is showing signs of resurgence



with prices firming up during weekly auctions, although rains have led to a slump

in production in the first five months of the year as compared to 2006. "We are achieving average prices in the weekly auctions with a kilogram
of tea being sold at Rs.60 which is about Rs.2.5 higher then what we got last year," stated Dhiraj Kakaty, secretary of the Assam chapter of the Indian Tea Association.

India's $1.5 billion tea industry has been in a slump since 1998 with prices and exports plummeting because of weak domestic demand and increased international competition coupled with poor quality teas being produced in the country. However, last year India produced a record 955 million kg, 27 million kg more than 2005. Exports went up by about eight million kg-200 million kg in 2006. "The reason for hitting good prices at the auctions is mainly due to very good quality tea being produced by India. Maximum stress and care is being taken to produce premium grade teas," Kakaty told IANS


. The northeastern state of Assam is considered the heart of India's tea industry with the state accounting for about 55% of the country's total annual tea production.

India aims to boost the overall exports with the industry body already setting up marketing bureaus in Cairo and Tehran. "We are getting queries from many countries and hope to do some good business this year," Kakaty said. The union commerce ministry will organize an international tea festival in November. The central government will also implement a $1.1 billion package to help the industry replant




tea bushes and boost quality.