Tea prices soar on weak global output
The price of supermarket-quality tea has increased dramatically in recent months due to adverse weather conditions in many producing countries. Wholesale price of black tea has risen by 41% since the beginning of the year, surpassing $4 a kilogram last month. This is the highest price since late 2009, when prices reached $5.45. The shortfall in supply is primarily attributed to erratic weather conditions across the globe. Kenya, the largest exporter of black tea, experienced dry spells, poor rains and frosts, whereas a bad monsoon has reduced yields in Sri Lanka and India. Experts predict that this rise may continue, as production shortfalls squeeze the market and demand rises quickly in India and China.