Kenyan drought forces up tea prices

09 September 1997

Kenyan drought forces up tea prices

TEA auction prices could remain high until the middle of next year, Indian
tea experts have warned. Prices have risen by 20% overall since the start of the year
and it is expected they will continue to increase for the rest of 1997.

The United Nations Food and Agriculture Organisation said the smaller crop
which has arisen from severe drought in Kenya followed by heavy rain, was not
expected to be offset by increased output in other countries.

Indias tea output is estimated at 373m kg (822m 1b) in the first seven
months of the year, up from 358m kg (789m 1b) compared with the same period in
1996, according to the United Planters Association of Southern India.

India is to test-market a cheaper blend of tea mixed with chicory and tapioca
on the rural market.