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Price rises brewing for tea drinkers as extreme weather hits harvests
13.07.2024 - 06:55 / euronews.com
Heatwaves and floods have had a hugely detrimental impact on India’s tea production, with excessive heat in May followed by flooding in Assam hitting output level. As a result it's estimated that the average price of tea could rise by up to a fifth.
Currently, China, India, Sri Lanka and Kenya are the biggest tea producing nations globally, accounting for about 75% of worldwide supply, according to Palais des Thes.
At the time of writing, one kilogram of tea was INR 223.46 (€2.47), having risen more than 47% since the start of this year. On a year-on-year basis, tea prices have risen about 22%.
In May this year, Indian tea production dropped to 90.92 million kgs, from 130.56 million kgs in May 2023. This was the lowest May figure for the country in more than 10 years.
The Indian government’s decision to ban the use of 20 pesticides is also contributing heavily to increasing tea prices, as several buyers are once again buying Indian tea. Previously, a number of countries were rejecting Indian tea exports, due to the high amount of pesticides used in some varieties.
Some of the key buyers of Indian tea are members of the Commonwealth of Independent States (CIS), which includes Armenia, Belarus, Azerbaijan, Kazakhstan, Georgia, Moldova, Kyrgyzstan, Tajikistan, Russia, Ukraine, Turkmenistan and Uzbekistan.
Several rejections of tea exports were coming from these countries, however, following the pesticides ban, demand for Indian tea has risen once again. However, production is still suffering considerably due to this decision, with several tea growers having to scramble to find pesticide alternatives.
One of the major factors impacting tea production worldwide is extreme weather and the gradual effects of climate change, such as unseasonal rainfall, floods, droughts, heatwaves and frost.
Excessive rainfall, especially, is highly destructive for tea plants, which are considered to be a rainwater plant. This means that tea plantations usually depend solely on rainwater for their water needs, with little to no processing water or irrigation systems. Increased rainfall can also lead to soil and slope erosion, damaging entire plantations and leaving farmers with less overall planting area.
As a result, both in times of high and low rainfall, harvests can suffer immensely, with tea producers left with few alternative means.
Frost can also be quite dangerous for tea plants, due to leaves first drooping under the weight of frost, then eventually freezing and breaking, leading to a high percentage of lost leaves. This is often seen in Rwanda and parts of China.
Other factors dampening the crop’s production and hiking tea prices are droughts, impacting both India and China, which can often cause increased dust on
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