08 September 1998
RUSSIAS economic crisis is upsetting tea prices. It is one of the worlds largest tea-drinking countries and is not participating in the large auctions.
Indian trade officials said there was still some Russian buying backed by letters of credit opened before the crisis began but the volume was not enough to stop the fall in the prices of the Russian types of tea produced in the north India centres of Cachar and Dooars and in southern India.
Sri Lanka, which also supplies tea to Russia, is also suffering.
The market has been further weakened by a slight fall-off in demand from Pakistan this year.
The softening of demand comes as India and Sri Lanka report larger harvests this year.
Financial Times 08/09/98 page 38