Drought Hits Tea Plan­ta­tions in South In­dia

The Economic Times - - Finance & Commodities - Kr­ish­naku­mar.PK @times­group.com

Kochi: In­clement weather has hit tea plan­ta­tions of Ker­ala lead­ing to a de­cline in pro­duc­tion. Out­put has slumped at Kanan De­van Hill Plan­ta­tions (KDHP) and Har­risons Malay­alam Plan­ta­tions (HML), two ma­jor tea cor­po­rates in South In­dia, in the cur­rent year due to an ex­tended drought fol­low­ing the fail­ure of north east mon­soon and frost over the last few weeks.

KDHP, the largest tea plan­ta­tion in South In­dia, had suf­fered heavy loss last year af­ter a strike by the women work­ers.

“This year, we started well and were in line for profit. But the drought re­sult­ing from fail­ure of north east mon­soon and the frost have ad­versely af­fected pro­duc­tion,” said Mathew Abra­ham, KDHP, MD. In­suf­fi­cient north east mon­soons have dried up wa­ter re­sources mak­ing ir­ri­ga­tion dif­fi­cult. “Ir­ri­ga­tion is out of ques­tion as wa­ter re­sources are scarce,” said C Vi­na­yaragha­van, CEO, HML. The com­pany has sev­eral es­tates in Wayanad where the weather is hot. KDHP ex­pects pro­duc­tion to be down 10% this year. The com­pany pro­duces over 20 mil­lion kg ev­ery year. Tea prices in South In­dia have been rul­ing at .₹ 110-115/kg dur­ing the year.

Out­put has slumped at Kanan De­van & Har­risons Malay­alam Plan­ta­tions

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