Lockdown impact: Tea firms see huge price surge in May due to scarcity

The shortfall in March and April has been exacerbated with the panic purchase of 50 million kg of existing inventory

Given the production shortage owing to the lockdown and panic buying helping clear the stocks, tea plantation companies are expecting a major price surge in May once the second flush season begins.
 

Industry officials noted that during March-April, there has already been a shortfall of around 90 million kg (mkg) and nearly all of the 50 mkg tea stocks have been sold.
 

This is because packaging companies sought to buy whatever tea was available, anticipating a lockdown extension and the resultant consumer demand. “There is practically no tea in the system now and only some production is there by south