Production shortfall signals price rise in India
The Tea Association of India released figures which suggest a price increase due to a shortfall in production. Consumption is estimated at 825 million kg, exports at 200 million kg and imports at 20 million kg, whereas total output should only reach 962 million kg for the current year. That represents a deficit of around 40 million kg. However, the chairman of Indian Tea Association hopes tea prices will stabilize in 2009, pointing to a strong opening of the new season in Spring.