India and Kenya face output pressures
The managing director of McLeod Russel, one of the largest tea growers in the world, says that ongoing droughts in Kenya will weigh heavily on the country's tea production. After a record year in 2010, the world's largest black tea exporter is expected to shed as much as 12% of its harvest this year. Prices are set to firm up as a result, especially when the political turmoil in Egypt, one of the major buyers, settles. As far as India is concerned, the country is running very low on inventory and will likely see price rises in the region of 5% to 7%. Quality teas are especially scarce and the demand from various export regions will remain strong throughout the year.