India’s tea industry expects a better second quarter as retail demand picks up.

India’s tea industry is expecting a better second quarter as retail demand has picked up across the country with the easing of Covid-led restrictions in most states.

Planters said good monsoon rains will give a boost to demand in rural areas where tea is the main beverage.

The improvement is not just in domestic demand. Orders from the US, UK and other countries are also increasing.

Indian tea prices have also corrected over the last one month by 25-30%, with supplies improving on the back of good rainfall in the tea estates after the March till May dry spell.

“There is a revival in demand as states open up. During the second wave, reaching tea at the distributor level was becoming a challenge. That problem has come down a lot, easing the supply line at retail level,” said Azam Monem, director, McLeod Russel India Ltd. “Production has also gone up, which has result .

(Source-ET)