Heavy rain helps Assam tea industry clear stocks, but production to decline

Darjeeling bears the brunt, as higher prices will be more than offset by lower production revenues

Even as tea plantations in Assam face a production drop facing excessive rains, the situation may prove to be a boon for the tea industry, as it will help sell off 24 million kg (mkg) carryover stocks with stable prices. Had there not been any carryover stock, prices could have jumped.

Industry officials, while complaining that a production fall could potentially impact prices, said that the situation will help balance tea availability at the auctions and thus will help in fetching expected prices in the near term.

Had production been normal at 30 mkg this March, it would have severely impacted forthcoming