Nairobi, May 29: The most beautiful gift to Africa from mother earth is its natural diversity. Kenya, one of the most well-known African nations is major tea exporter of the world. The country’s top exporting ingredient is tea. The local market of the country only consumes 5% of the tea production and rest 95% is usually exported. But unfortunately, last year’s drought reduced the tea production in Kenya leading a climb to higher prices of tea.
Due to dry weather, again Tea prices are likely to climb further. In India, also due to dry weather the production was hampered. Sri Lanka, another key exporter of tea is now facing a severe flood. The overall scenario predicts a rise in tea prices. From last year, the tea shipping from Kenya dropped by over a third. At same time period, the tea production in India was down by 16%. India is world’s biggest black tea producer. Due to flood and landslide, the transportation system of Sri Lanka is badly affected, though officials from the country have promised to limit the impact as much as possible.
Tea prices globally are up 15 to 20 percent already compared to the last year. Kamal Baheti, chief financial officer at McLeod Russel( a leading tea company) has said that he is expecting prices to remain firm this year. AN Singh, managing director of Goodricke Group, a producer based in the eastern Indian city of Kolkata has also given the same message.
In Kenya, the weather condition is already improved that could lead to higher production in the second half. Though Kenya has already lost a huge amount of cop, Kenya is not losing crop anymore. If the situation gets better in next few months, then the price may come under control.