REFILE-Floods, coronavirus dent India's tea output in very first half of 2020

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( Corrects grammar in headline)

By Rajendra Jadhav

MUMBAI, Aug 11 (Reuters) – India’s tea production in the first half of 2020 fell 26.4%from a year ago to 348.26 million kilograms (kg) as heavy floods and coronavirus movement restrictions curbed output in the main producing area, the state-run Tea Board stated in a statement.

Tea growing locations, especially Assam – which accounts for majority the nation’s production – suffered flooding in May, June and July.

Domestic prices have risen to a record high as a result, which may limit exports by the world’s second-biggest manufacturer, potentially making it possible for Kenya and Sri Lanka to ship more, several trade sources stated.

In June, India produced 138.52 million kgs of tea, down 8%from a year back as plucking was impacted by floods in north-eastern state of Assam, the Tea Board stated.

Sujit Patra, secretary at Indian Tea Association said a healing in the crop was unlikely in the 2nd half of the year.

In July, weekly auction costs jumped to a record of 232.60 rupees ($ 3.12) per kg, up 57%from a year ago, according to the Tea Board.

India’s tea exports in the first five months of 2020 fell 26.6%from a year ago to 74.40 million kgs, it said.

The nation exports CTC (crush-tear-curl) grade generally to Egypt, Pakistan and the UK, with the orthodox variety shipped to Iraq, Iran and Russia.

$ 1 = 74.6530 Indian rupees
Reporting by Rajendra Jadhav; Modifying by Simon Cameron-Moore

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