Pune: Tea powder prices to rise up; Lockdown, Heavy rains affects tea production in Assam and Kerala

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Pune, August 17, 2020: First, over a two-months long strict lockdown and then heavy rainfall has hugely affected the tea production in Assam and Kerala – the two states which produce and exports tea across India. Both states were highly affected by the heavy monsoons which caused floods in several parts of the state, damaging the tea plantations as well. Already, the tea production got delayed this year, due to the lockdown induced by Coronavirus disease (COVID-19) situation, consequently, the price of tea powder has increased from Rs 80 to Rs 100 per kg.

Therefore, tea prices are likely to shot up as there is a decline in production.  Gradually, tea powder sellers and tea shops have started business again, post-lockdown ease. The price of tea hasn’t been increased by the tea shops, but they are likely to rise up in the coming days.

Assam and Kerala are two main tea production states which supply tea to the entire country. Tea from Assam is considered to be of higher quality than the southern states. Urban tea consumers use CTC leaf tea of Darjeeling, Assam, prices of these tea leaves are high. Whereas, rural consumers use dust powder, the prices are low. The price of one kg of tea leaf (CTC Leaf) is in the range of Rs 180 to Rs 350 depending on the quality. However, the possibility of tea prices to range anywhere between Rs 390 to Rs 480 per kg.

Dust powder tea type are mostly produced in southern states and cost between Rs 180 to Rs 200 per kg depending on the quality. Dust powder prices have increased due to declining production, said Vijay Gujarathi, a leading tea powder seller in Bhavani Peth Bhusar Bazaar. “Besides, heavy rains have washed away tea plantations in Assam and Kerala. Nonetheless, during pandemic led lockdown workers were unavailable to pluck tea leaves. Hence, the prices of tea increased,” Gujarathi added.

India ranks second in the world to produce tea

-Sri Lanka and India are two countries that largely export tea across the globe. The largest production of tea is in Sri Lanka, then in India.
-Tea produce in India is sold across the world including European countries, the USA, China. Tea powder exported in European countries is of high quality.
-The prices of tea exported to other countries range from Rs 800 to Rs 1200 depending on the quality.