India braces for big output fall due to adverse weather
Growers in India, the second largest tea producing country in the world, are bracing themselves for a significant fall in tea output due to unfavorable weather conditions over the past few months. Rising production costs and low auction prices are only exacerbating the effects in Assam and Bengal, which represent around three-quarters of India's annual 1,200-million-ton output. Estimates by the Tea Association of India suggest a loss of up to 30-35% of first flush tea harvest, which has just ended and usually fetches premium prices compared to subsequent ones. And while production costs keep climbing given irrigation and pest management expenses, prices fetched at auctions are decreasing by about 5% year on year.