Tea loses its steam; prices rise as tealeaves fall in short supply

Dry weather in India, Sri Lanka and Kenya leads to global shortage

Tags: UK Tea Council, Bill Gorman, dry weather

5th September 2009:
If you are an Indian, Kenyan or a Sri Lankan, remember to get cartons full of tealeaves from back home. For global tea shortage has added the ingredient of expense to your hot favourite drink.
Available information suggests tea lovers have to pull out more from their wallets for tea as dry weather in India, Sri Lanka and Kenya has led to a global shortage of about 90,000 tonnes. The deficiency has led to the raising of the wholesale prices.
It is believed the production of tea has come down by 15 per cent, resulting in a worldwide shortfall in the global tea market.
As per The Sky News report, Bill Gorman from the UK Tea Council said they believe there was about 80,000 to 90,000 tonnes of tea short in the world tea market now, and with growing demand and falling supplies, the cost of leaf tea at auction was being pushed up.
At a sale in Kenya last month, prices for the highest quality tea were said to have risen by more than a third. The retail price for the drink has already increased by more than 10 per cent this year.
Gorman asserted where a box of 80 tea bags in the UK only rose about 10 pence from 1999 to 2009 because of over-supply of tea, now that oversupply has gone, they were starting to see those prices rising again.
By Monika

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