COLOMBO (Commodity Online) : World’s second largest tea exporter Sri Lanka said demand for its tea from global markets are expected to climb by 10 percent this year.
According to Sri Lanka Tea Board lower output from India and Kenya and economic recovery contributed to the rise in demand.
In a statement the Board said it has already working to developing plants that cold better resist drought conditions and environmental hazards.
Tea industry experts say exotic and organic teas are reported to be wooing global tea drinkers and challenging traditional black tea's dominance as never before.
Green tea was relatively unheard of 25 years ago in many Middle Eastern countries, but this has changed rapidly in the past five years, experts said.
The global tea market is expected to rise up to seven percent annually, as tea is very much on the health and wellness trend.
Tea has been relatively unaffected by the sharp rise in global commodity prices seen earlier this year, but climate change is beginning to affect tropical crops, including tea.
Prices are more volatile than ever, and the cost per cup has risen steadily for the past five years, analysts said
Tea has been spared extreme market volatility partly because it is perhaps the only commodity without a "futures" market, unlike commodities such as oil, coffee, cocoa, sugar and wheat, they added.
Industry officials agree that a tea futures market did not develop because of the crop's extreme seasonality, its infinitely variable quality and because it cannot be stored for long periods without losing aroma.
volatility has, indeed, increased in the past few years because of crop failures triggered by droughts, particularly in Kenya, India and Sri Lanka, they added.
source - www.commodityonline.com
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