India Assam tea output to fall on pest attack: report

July 15, 2010 (LBO) – Tea output in India’s Assam region, the country’s top production region may fall 30 to 40 percent in the second half of 2010, leading to higher prices, a media report said. Last year India had produced 979 million kilograms of tea.

Assam is said to produce more than half of India’s tea.

“There™s been a majorly excess rainfall in June, leading to a pest attack, which would have wiped out 30 to 40 percent of the Assam crop,” Bloomberg newswires quoted India’s state-run Tea Board chief Basudeb Banerjee as saying.

“This will have an impact on production even in July and August.”

Prices have already climbed about 15 rupees a kilogram at auctions, the report said.