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Cost of cuppa soars after poor harvests
Jonathan Prynn31.03.09
The price of a cup of tea has soared to a 10-year high because of poor harvests and the weak pound.
A typical supermarket 80-bag box such as PG Tips or Typhoo has risen by a quarter from a low last year of about £1.60 to almost £2.
Harvests have suffered in three main growing areas - Sri Lanka, India and East Africa.
Traders and wholesalers are still awaiting Kenya's delayed rainy season, fearing a second year of drought will send prices higher.
The slump in the pound's value against the dollar, used for wholesale tea auctions, has not helped.
At Mombasa market, in Kenya, prices have risen by 15 per cent since the start of the year.
Imports, 165,000 tonnes at a 1970 peak, were 140,000 tonnes last year but demand for speciality teas such as Lapsang Souchong and Earl Grey is driving a revival.
