Indian tea prices to rise due to COVID-19 and drought

In India, tea production faces serious problems this year due to both drought and the COVID-19 pandemic, Report mentions, referring to FT.

At least 90 tea farms in a leading tea producer Assam recorded 500 coronavirus cases. At the same time, there was a drought in Assam and the country's northeastern region, where tea is grown.

Manufacturers say that if the coronavirus is not prevented, it will lead to an increase in prices. According to Van Rees, tea production in the northern part of India in March this year amounted to 47 million kilograms, which is more than in the same period last year but much less than in 2019. The Mintec think tank said that tea was more than 40% more expensive at auctions in the most significant export hub - Calcutta in April than the previous month.

India, the world's second-largest tea producer after China, had a several-week hiatus last month due to bad weather and a coronavirus, and production suffered severely. According to experts, the challenges facing India could create additional opportunities for tea-producing countries such as Sri Lanka.