Tea prices soar on double trouble in India, Sri Lanka

Extreme weather, disease and economic crisis have shrunk harvests

20241011  general image of Sri Lanka tea

Reduced production in the wake of Sri Lanka's economic crisis is also pushing up prices.  © Getty Images

MACHIKA SUZUKI, Nikkei staff writer

TOKYO -- Prices for black tea have risen sharply as extreme heat, floods and disease have ravaged plantations in India, one of the world's largest tea growers.

Benchmark auction prices of tea from northern India averaged around 260 rupees ($3.10) per kilogram in late September, up about 30% year-on-year. Prices began to rise in April.

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