Tea prices soar in India on global price rises
Tea prices in India, the world's second largest producer, have jumped this week, tracking global cues. Reports from auctions indicate that new season quality tea sold 29% higher, while the average quality rose 15%, compared to the same period last year. This comes after several major auctions around the world reported high tea prices. Top-grade tea gained 10% in Kenya over the last week, and similar rises were reported in Sri Lanka. Despite India ranking second in tea production after China, its per capita consumption of the beverage is only 0.8 kg compared with 2.5 kg in the UK and 1.5 kg in Ireland. However, there has been a steady annual growth of about 3% in domestic consumption and local consumers are increasingly willing to spend more for a good quality tea.