The price of Indian tea has risen to record levels

Published 2020년 7월 28일

Tridge summary

Indian tea prices have reached a record high of $ 3.11 / kg due to production reductions caused by severe flooding and quarantine restrictions from the coronavirus pandemic. The flooding damaged tea plantations in Assam, which is responsible for more than half of India's tea production, and quarantine restrictions further reduced production. These high prices could support the Indian tea industry by offsetting rising production costs and limiting exports, but may also increase supplies from competitors like Kenya and Sri Lanka. The cost of production has significantly increased in recent years, and many tea producers may not be able to survive with current prices.

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Original content

After a reduction in production, Indian tea prices jumped to a record level - $ 3.11 / kg. This was due to intense flooding and quarantine restrictions caused by the coronavirus pandemic. This was reported by Reuters, writes agronews.ua. Rising prices may support the Indian tea industry, which has struggled with rising production costs. It could also limit 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 was a reduction in production due to quarantine restrictions. "It is expected that a 10% loss of harvest will be offset by a 12% rise in prices after eight years of price stagnation. However, next year prices may fall amid likely reports of increased production, "said Prabhat Bezborua, chairman of the Indian Tea Council. Production losses have already raised weekly auction prices to a ...

Source: AgronewsUA