India's tea production in the first half of 2020 fell 26.4% from a year ago to 348.26 million kilograms (kg) as heavy floods and coronavirus movement restrictions curbed output in the main producing region, the state-run Tea Board said in a statement.
Tea growing areas, notably Assam - which accounts for more than half the country's production - suffered flooding in May, June and July.
Domestic prices have risen to a record high as a result, which may limit exports by the world's second-biggest producer, potentially enabling Kenya and Sri Lanka to ship more, multiple trade sources said.
In June, India produced 138.52 million kilograms of tea, down 8 percent from a year ago as plucking was affected by floods in north-eastern state of Assam, the Tea Board said.
Sujit Patra, secretary at Indian Tea Association said a recovery in the crop was unlikely in the second half of the year. In July, weekly auction prices jumped to a record of 232.60 rupees ($3.12) per kg, up 57 percent from a year ago, according to the Tea Board.
India's tea exports in the first five months of 2020 fell 26.6 percent from a year ago to 74.40 million kilograms, it said. The country exports CTC (crush-tear-curl) grade mainly to Egypt, Pakistan and the United Kingdom, with the orthodox variety shipped to Iraq, Iran and Russia.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM
PM Modi, Rahul Gandhi election rallies in Delhi today: Here are the routes to avoid
May 18, 2024 11:28 AM