Kenya dry spell offers respite for Indian producers
Dry weather in Kenya, the world's largest black tea exporter, is expected to offer some much-needed relief for other manufacturers across the globe. Following several bumper harvests and falling prices, recent drought-like conditions are threatening Kenya's output, which is likely to boost demand and auction prices of Indian black tea. According to data by the Indian Tea Association, global production dropped over 7% to 435 million kilograms in the first quarter of 2015 driven by a 31% slump in Kenyas output. Large Indian manufacturers are likely to benefit most, with McLeod Russel expecting prices to edge up by as much as 8% this year, while other experts anticipate gains in the 10-15% range.