Indian tea rose to a record level: weather and pandemic helped

Published 2020년 7월 26일

Tridge summary

The Indian tea industry is experiencing a surge in prices due to flooding in Assam, which accounts for more than half of India's tea production, and quarantine restrictions. This has led to a 10% yield loss and a 12% price increase after eight years of price stagnation. However, prices may fall next year due to anticipated increased production. The high manufacturing costs and potential loss of crop have increased concerns about the industry's future. The situation has also impacted New Delhi's exports, leading to a rise in supplies from competitors like Kenya and Sri Lanka.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Reported by Reuters. Rising prices could bolster the beleaguered Indian tea industry, which was struggling with rising production costs. It could also restrict New Delhi's exports and increase supplies from competitors such as Kenya and Sri Lanka. Floods have damaged tea plantations in the northeastern state of Assam. This region accounts for more than half of all tea production in India. Earlier, there has already been a reduction in production caused by quarantine restrictions. “The 10% yield loss is expected to be offset by a 12% price increase after eight years of price stagnation. However, prices may decline next year amid likely reports of increased production, ”said Prabhat Bezborua, chairman of the Tea Council in India. Production losses have already pushed weekly auction prices to a record Rs 232.60 ($ 3.11) per kilogram, up 57% from a year ago. According to Kalyan Sundaram, secretary of the Kolkata Traders Association, this is comparable to the average annual price ...

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