Largest Darjeeling producer warns on output fall
According to Ashok Lohia, the largest Darjeeling tea producer with 13 tea estates under management, output of first flush Darjeeling tea has been adversely affected due to the lack of rain and drought conditions for the second year in a row. On average, he estimates that production will come in 25% lower than normal. In addition to this, the Indian region is dealing with a falling premium on organic teas, where costs are considerably higher and practices more complex, as more than 50% of organic produce is selling below the cost of production.