India
Interviewed on CNBC-TV18, Aditya Khaitan, managing director of McLeod Russel, said that he believed Indian tea prices could increase by 5% to 7% in 2011.
Citing reduced production Kenya, Khaitan was bullish over prospect for Indian tea exports this year.

“India is running on inventory levels right now,” he said. “India today, is sitting on a 100 million kg deficit as we begin the year. This is the first time in the history of the tea industry where we have seen this kind of shortage. India itself is running very low on inventory levels. If we do have the African drought now and the months of April-May-June is the quality period for Indian Assam teas and are the exportable type of teas, this will lead to a higher export price for us in Assam and in McLeod Russel…it is looking very good for us going into the season.
“There is very big variant that’s taking place now in India,” Khaitan said. “There is a vacuum for quality teas and there is a huge demand for that. For that the premiums are very good and there is a slight premium for common teas. It just depends on how we start the year in terms of our weather and our crop. Overall, if I look at it on a year-to-year basis, I expect a 5% to 7% increase over this year.”