Tea output in May dropped 12 per cent due to dry weather

9 Jul, 2014

Reuters: A drop in output has been pushing up prices in the world’s second biggest producer and can reduce its exports.A drop in output has been pushing up prices in the world’s second biggest producer and can reduce its exports.

MUMBAI: Tea production in May dropped 12 per cent from a year earlier to 91.41 million kg on a drop in plucking in the northern states due to extreme dry weather, the state-run Tea Board said on Wednesday.

A drop in output has been pushing up prices in the world’s second biggest producer and can reduce its exports.

Production in northern India fell 16.6 per cent from a year earlier to 65.88 million kg, the board said in a statement.

Tea output in Assam state is likely to fall by 10 percent in 2014 due to scanty rainfall and a sharp rise in temperatures, hitting exports of premium grade leaf from the world’s biggest black tea producer, industry officials said.

India exports CTC (crush-tear-curl) grade mainly to Egypt, Pakistan and the UK, and the orthodox variety to Iraq, Iran and Russia.