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Tea industry in India suffers double whammy from rains and Kenya


By Pradipta Mukherjee

India’s long-established tea industry is struggling.

Heavy rains and the absence of tea pickers due to lockdowns have hammered manufacturing and despatched native costs spiraling to data, whereas prime consumers are turning to Kenya the place the market has dropped, mentioned Azam Monem, director at Mcleod Russel India Ltd., one of many nation’s greatest growers.

Output in the world’s second-largest producer is ready to shrink to the smallest in 5 years, falling 13% to about 1.21 billion kilograms, whereas exports will drop 16% to about 210 million kilograms, a six-year low, in keeping with Monem.


The tea industry goes via a troublesome time, Monem mentioned in an interview. Home manufacturing is falling after extreme rain in June and July and as a result of lockdowns stored staff away from the plantations, whereas importers in the U.Ok., Egypt and the Center East could swap to Kenya, he mentioned.

Public sale costs in the African nation have fallen after manufacturing of black tea climbed greater than 40% in the primary half from a 12 months earlier on good climate, in keeping with the Tea Directorate. Against this, costs are at a document in the principle rising areas of India, Monem mentioned. Common costs jumped about 60% between April and early August from a 12 months earlier, he mentioned.

Nonetheless, even with the upper costs, decrease volumes are hurting the money circulation of Indian tea corporations, Kaushik Das, analyst at ICRA Ltd., mentioned in a report.

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