India

After almost a decade in the doldrums, 2008 and 2009 were better years for the South Indian tea industry.

Incomes in 2009 benefitted from a drop in global production and increased consumer demand, particularly in the domestic market. Favorable rains in 2009 also benefited farmers.

"The effects of North East monsoon failure in 2008 was felt this year, but the timely rain in June through September somewhat reduced the gap in production," according to Upasi Tea Research Foundation assistant director B. Radhakrishnan, quoted by Reuters.

Earnings rose from Rs65.63 (US$1.41) per kg in 2008 to Rs81.25 per kg in 2009, while production went from 200.8 million kg in the first 10 months of 2008 to 196 million kg during the same period in 2009.

"However, the prices need to be maintained at the current level for the industry to grow," according to United Planters’ Association of Southern India (Upasi) commodities head R. Sanji.