Lack of rainfall puts increasing pressure on India's growers
A continuing lack of rainfall in India's main tea growing regions of Darjeeling and Assam is putting increasing pressure on the local industry, with both quarterly and annual outputs predicted to fall as a result. In Assam, which accounts for more than half of India's total 1,200 million kilogram output, industry officials predict up to a 10% fall in annual volumes due to scarce rainfall and rising temperatures. Gardens in Darjeeling, which produces much less tea than Assam in terms volume, are also reportedly impacted in the run-up to the lucrative first and second flushes, which are mainly exported. Fears of damaged crops are reinforced by the local weather office, which predicts below-average rainfall in 2014 due to risks from the El Nino weather pattern. However, overall impact on earnings of local growers remains limited at the moment, as the resulting fall in volumes would be compensated by price rises.