Crisis brewing in South India over falling tea prices
Tea farmers in South India are bracing themselves for a potential crisis due to falling auction prices. Prices have fallen more than 5% so far in 2014 compared to historically low prices of the previous year, despite a significant shortfall in output due to extreme weather conditions. Furthermore, farmers have to deal with increased production costs and the possibility of lower tariffs imposed on imported teas, which would depress demand even more. The local tea industry is looking for government intervention to ensure fairer prices for producers and support the industry's 2.5 million workers.