1. 2006 - 07

3. Weekly averages have been generally higher than 2005, through the season. From sale 29 to 50 weekly averages at GTAC were lower than 2004. Sale 51 onwards averages started to climb 2004.

4. Tata Tea nearly doubled its purchases from 4.54 million kilograms in 2005-06 to 9.27 million kilograms during 2006-07. HLL purchased 1.56 million kg. more from Guwahati auctions this year.

5. 84.09 million Kg. @ Rs. 68.05 17.19 million Kg. @ Rs. 65.37 9.27 million Kg. @ Rs. 66.33

6. 75.30 million Kg. @ Rs. 61.92 4.54 million Kg. @ Rs. 64.48 15.63 million Kg. @ Rs. 63.12

7. In the Dust section Tata Tea more than doubles its purchases from 2.19 million kilograms in 2005- 06 to 5.16 million kilograms during 2006-07. Congratulations are in order! HLL purchased 1.41 million Kg. more in the Dust category.

8. 35.78 million Kg. @ Rs. 68.51 10.70 million Kg. @ Rs. 67.49 5.16 million Kg. @ Rs. 68.76

9. 31.17 million Kg. @ Rs. 59.08 9.29 million Kg. @ Rs. 58.20 2.20 million Kg. @ Rs. 62.52

11. Batting order Highlights The first 6 places are taken by proprietorial marks! In total proprietorial marks occupy eight places in the top 20 list at GTAC. Congratulations are in order for MRIL who has managed to turn around the DDIL plantations. A jump of Rs. 16.62 per Kg. in one season is commendable indeed. Performances of Andrew Yule, Parry Agro and Jallan Dibrugarh, all of whom registered double digit jump in averages are also noteworthy. Finally, Apeejay Group with a consolidated average of Rs. 75.67 has delivered consistently on the quality front. Congratulations!

13. April 2006 to January 2007 Dooria and Arun both feature in the Top 20 list. Over all Kothari Group occupies the top slot at GTAC in terms of average price realization.

14. April 2006 to January 2007

15. McLeod Russel contd.

16. Average price of the erstwhile DDIL Plantation estates up by as much as Rs. 15 to Rs. 17 per kilogram.

17. April 2006 to January 2007 Apeejay Group has been able to achieve quality and consistency across all estates and is today a reliable supplier of liquoring teas at the GTAC.

18. April 2006 to January 2007

19. Tata Tea contd. B & A Plantations

20. April 2006 to January 2007 Substantially lower offerings from this group during the season. Almost nil from their Assam estates. Price-wise their Cachar marks have fared well.

21. Assam Tea Corporation Moran Tea Company

22. Andrew Yule Bhaskar Tea & Industries

23. Jallan Dibrugarh Parry Agro Both Jallan Dibrugarh as well as Parry Agro registered double digit gain in average price realization at the GTAC.

24. April 2006 to January 2007 Given the market conditions, Meleng has perhaps performed below its potential at the GTAC. Cachar estates recorded suitable gains in line with the market.

25. April 2006 to January 2007

26. BLF contd.

28. * HLL averages based on provisional prices Private sales at GTAC has grown marginally from 21.0 million kilograms during 2005-06 to 21.5 million kilograms up to end January 2007.

30. Globally there is no shortfall in production of tea. A record all India crop nearly offsets shortfall in Kenyan and Indonesian production. In million kilograms CountryJanuary to20062005+/- North IndiaDecember729.62700.9828.64 South IndiaDecember226.29227.01-0.72 All IndiaDecember955.91927.9927.92 Sri LankaDecember310.81316.45-5.64 BangladeshDecember53.2660.14-6.88 KenyaDecember310.57328.49-17.92 MalawiDecember45.0737.907.17 UgandaDecember34.3337.73-3.40 Indonesia (PTP only)December71.8087.30-15.50 TanzaniaDecember30.2929.670.62 ChinaDecember1020.00934.9085.10 ArgentinaDecember82.0073.009.00 Total 2914.042833.5780.47

31. South India exports have gained over 17% but exports from North India are lower by 12.37%. While exports from China are more or less stagnant, Vietnam has recorded the maximum gain. In million kilograms Country200420052006% change North India 99.086.7-12.37% South India 100.1117.117.05% All India197.7199.1203.92.42% Sri Lanka290.7298.8314.95.41% Kenya333.8349.7313.7-10.30% China280.2286.3286.50.04% Indonesia98.6102.3 Vietnam70.088.0104.819.09% Argentina66.4 70.76.53% Malawi46.643.0 Uganda29.733.1 Bangladesh13.49.0 Turkey5.97.0 Total1432.91482.6

32.  The all India crop up to end December 2006 registered an all time record of 956 million kilograms.  North Indian teas have averaged Rs. 8.82 per Kg. more than last year.  Indian Orthodox teas seem to have regained their flavor and suitably augmented averages for producers of orthodox teas.  All in all a reasonably good season except for the fact that we could not really take advantage of the shortfall in Kenyan production.  Given the Kenyan shortfall of 17.92 million kilograms, it was expected that Indian tea exports should have been higher than the 195.45 million kilograms exported during the calendar year 2007. (Tea Board has of course released a revised export figure of 203 million kilograms for the period.) Highlights 2006

33.  Assam has had useful rains during February 2007. Provided we have good sunshine during the next few days, it is expected that we may see a slightly early start to the season.  Subject to ground temperatures rising we may even have a bumper first flush to boot.  On the supply side auctions are running dry and 3 sales are being dropped in each of the three north Indian auction centers.  While there still appears to be sufficient stocks in the mandis, we understand that there is a dearth of good teas. In fact, for a variety of reasons the domestic market has been starved of quality since mid October 2006.  We are therefore convinced that new season teas will witness attractive opening levels, particularly for the above average quality.  Depending on export performance, medium Assams are likely to be under some supply side pressure from July onwards. However, we do not foresee any drastic changes in levels over season 2006-07. Prospects 2007

34.  Consistent and growing demand from Russia and West Asian countries will ensure that more orthodox tea is produced during the coming season. Egypt has brought down its import duty on tea from 5% to 2%. All these will not only boost exports but will also ease the pressure on CTC teas.  On the flip side, Kenyan crop has shown a smart recovery and the coming season is likely to be a normal harvesting season. Their production during January 2007 is up 132% at 41.6 million kilograms against 17.94 million kilogram last year. This may play on the psyche of the domestic traders to some extent.  However, domestic consumption of tea has definitely grown over the years and is currently pegged at over 800 million kilograms. If this estimate is correct, then all we have to do is export 200 million kilograms for the domestic market to find an equilibrium!  An area of concern for the auctions is the growing trend between bigger buyers and producers to source/sell teas directly. This weakens the auction system and indirectly affects price realization for producers. Overall our approach to the new season is one of cautious optimism where quality rather than quantity will be the key to reaping dividends. Prospects 2007

35. We thank you once again for your valuable support and wish you the very best in season 2007-08. ETB