<p>Mumbai: India's tea prices have been soaring and are expected to stay high as heatwaves and floods during the peak harvesting season slash output in key producing regions.</p><p>The price rise could support the beleaguered Indian tea industry, which has been struggling with rising production costs amid a negligible rise in tea prices in the past decade.</p><p>"Extreme weather events are hurting tea production. Excessive heat in May, followed by ongoing flooding in Assam, are reducing output," said Prabhat Bezboruah, a senior tea planter and former chairman of India's Tea Board.</p>.Protesters prepare black tea to protest against hike in milk price.<p>Production was also affected by the government's decision to ban 20 pesticides, Bezboruah said.</p><p>India's tea production in May plunged more than 30% from a year earlier to 90.92 million kg, its lowest for that month in more than a decade, hurt by excessive heat and scant rainfall.</p><p>In the north-eastern state of Assam, which accounts for more than half the country's output, more than 2 million people have been affected by severe river flooding in July.</p><p>The upside in tea prices started after a heatwave reduced production from April onwards amid good demand, said Kalyan Sundaram, secretary of the Calcutta Tea Traders' Association.</p><p>In the last week of June, average tea prices surged to 217.53 rupees ($2.61) per kg, marking a near 20% increase from a year before, according to data compiled by the Tea Board.</p><p>Tea production improved in June after good rainfall gave respite from the heatwave, but again flooding in July has limited plucking in many districts of Assam, said a Jorhat-based tea planter.</p><p>"July is typically a peak production month, but this year we anticipate a shortfall of 15 to 20 million kg," the planter said.</p><p>India produced a record 1.394 billion kg of tea in 2023, but in 2024 production could fall by around 100 million kg, said Bezboruah.</p><p>The production shortfall should drive prices significantly higher, but financially weak and indebted producers are struggling to bargain with powerful buyers in peak production months, said a Kolkata-based trader.</p><p>More than half of India's total tea production is plucked during July to October.</p><p>Average tea prices in 2024 could be 16% to 20% higher than last year, but the increase is unlikely to reduce tea exports, as many buyers are boosting their purchases following the pesticide bans, said Bezboruah.</p><p>India's tea exports in the first four months of 2024 jumped 37% from a year ago to 92 million kg, according to the commerce ministry.</p><p>The country exports the CTC (crush-tear-curl) grade mainly to Egypt and the United Kingdom, with the orthodox variety shipped to Iraq, Iran and Russia. </p>
<p>Mumbai: India's tea prices have been soaring and are expected to stay high as heatwaves and floods during the peak harvesting season slash output in key producing regions.</p><p>The price rise could support the beleaguered Indian tea industry, which has been struggling with rising production costs amid a negligible rise in tea prices in the past decade.</p><p>"Extreme weather events are hurting tea production. Excessive heat in May, followed by ongoing flooding in Assam, are reducing output," said Prabhat Bezboruah, a senior tea planter and former chairman of India's Tea Board.</p>.Protesters prepare black tea to protest against hike in milk price.<p>Production was also affected by the government's decision to ban 20 pesticides, Bezboruah said.</p><p>India's tea production in May plunged more than 30% from a year earlier to 90.92 million kg, its lowest for that month in more than a decade, hurt by excessive heat and scant rainfall.</p><p>In the north-eastern state of Assam, which accounts for more than half the country's output, more than 2 million people have been affected by severe river flooding in July.</p><p>The upside in tea prices started after a heatwave reduced production from April onwards amid good demand, said Kalyan Sundaram, secretary of the Calcutta Tea Traders' Association.</p><p>In the last week of June, average tea prices surged to 217.53 rupees ($2.61) per kg, marking a near 20% increase from a year before, according to data compiled by the Tea Board.</p><p>Tea production improved in June after good rainfall gave respite from the heatwave, but again flooding in July has limited plucking in many districts of Assam, said a Jorhat-based tea planter.</p><p>"July is typically a peak production month, but this year we anticipate a shortfall of 15 to 20 million kg," the planter said.</p><p>India produced a record 1.394 billion kg of tea in 2023, but in 2024 production could fall by around 100 million kg, said Bezboruah.</p><p>The production shortfall should drive prices significantly higher, but financially weak and indebted producers are struggling to bargain with powerful buyers in peak production months, said a Kolkata-based trader.</p><p>More than half of India's total tea production is plucked during July to October.</p><p>Average tea prices in 2024 could be 16% to 20% higher than last year, but the increase is unlikely to reduce tea exports, as many buyers are boosting their purchases following the pesticide bans, said Bezboruah.</p><p>India's tea exports in the first four months of 2024 jumped 37% from a year ago to 92 million kg, according to the commerce ministry.</p><p>The country exports the CTC (crush-tear-curl) grade mainly to Egypt and the United Kingdom, with the orthodox variety shipped to Iraq, Iran and Russia. </p>