Global tea shortage to send prices soaring

Tea lovers will have to shell more for their favorite drink now as dry weather in India, Sri Lanka and Kenya has led to a global shortage of about 90,000 tonnes, raising wholesale prices.     

Production of tea has come down by as much as 15 per cent leading to a worldwide shortfall in the world tea market.     

"All in all we reckon we are about 80,000 to 90,000 tonnes of tea short in the world tea market now," said Bill Gorman from the UK Tea Council, the Sky News reported.     

And with growing demand and falling supplies, the cost of leaf tea at auction is being pushed up.     

At a sale in Kenya last month prices for the highest quality tea were said to have risen by more than a third.    

The retail price for Britain's favourite drink has already increased by more than 10 per cent this year. "Where a box of 80 tea bags in the UK only rose about 10 pence from 1999 to 2009 because of over-supply of tea, now that oversupply has gone, we are starting to see those prices rising again," said Gorman.