homemarket Newscommodities NewsIndian tea connoisseurs may have to shell out more due to 25% reduction in crop, hints expert
Indian tea connoisseurs may have to shell out more due to 25% reduction in crop, hints expert
“With no rains being received in the period of November and December, there is a likelihood of 25 percent reduction in the crop,” Prabir Bhattacharjee, Secretary General, Tea Association of India said.
India is the second largest tea producer in the world and Assam is the single largest tea-growing region. But the recent long dry spell since November in Assam and West Bengal is likely to impact the production of premium first flush teas. Tea prices rose last year even as exports saw an 18% growth.
Prabir Bhattacharjee, Secretary General, Tea Association of India discussed whether India could continue with the numbers.
“With no rains being received in the period of November and December, there is a likelihood of 25 percent reduction in the crop,” he said.
Commodity prices have come off 2023 highs, posting a negative February as the US dollar index rebounds to 7-week highs. Markets are factoring in a 50 basis points (bps) rate hike in the next meeting.
Also, the uneven and erratic China recovery has led to the prices weighing on commodity prices.
The Street is watching is the Black Sea Grain initiative brokered by the UN and Turkey last July - allowing grain to be exported from three Ukrainian ports. The agreement was extended in November and will expire on March 18 unless an extension is agreed upon.
While speaking to CNBC-TV18, Carlos Mera, Head-Commodity Research at Rabobank said, “Going forward, we expect to see a little lower exports even if the deal is extended.”
For more details, watch the accompanying video
(Edited by : Pradeep John)
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