Guwahati, September 1 :

India will be importing an estimated 25 million kg of tea by the year-end to meet growing domestic demand and production shortfall due to scanty rains.

“The domestic consumption of tea is increasing at a compounded rate of 3.3 per cent, while crop production has been hit due to inadequate rainfall leading to a gap in demand and supply of the beverage by about 25 million kg,” Dhiraj Kakati, secretary of the Assam chapter of the Indian Tea Association (ITA), said.

In 2005, Indian imported 16 million kg of tea with the country’s domestic consumption pegged at 805 million kg.

India produced a record high of 928 million kg of tea last year compared to 820 million kg in 2004. India is the world’s largest tea producer followed by China. In 2005, India exported 192 million kg of tea.

“Adverse weather conditions have hit production with estimates showing deficit of about 10 million kg so far this year compared to 2005,” the official said.