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Climate & Supply

When the Rain Fails, What Actually Happens to the Tea Price?

Two Kenyan droughts, a dry Assam monsoon, and a Sri Lankan cyclone give four real, recent tests of what a weather shock does to the tea price. The answer is not the simple shortage story it looks like from outside.

A tea plantation on rolling green hills with scattered tall trees under a cloudy monsoon sky.
A tea estate in Chikmagalur, India, under a heavy monsoon sky. The rain that falls, or fails to, on gardens like this one is the first link in a chain that ends at the auction price.Hemendra Ahuja

The instinct is simple: less rain, less tea, higher price. The record of the last few years says otherwise, or at least says it is not that simple. Two Kenyan droughts a few years apart moved the price in opposite directions. A genuinely dry season in Assam this year coincided with a falling price, not a rising one. A cyclone that killed hundreds of people in Sri Lanka barely touched the country's tea output at all. A weather shock does not set the tea price by itself. It sets off a chain, garden to factory to auction floor, and what happens to the price depends on where in that chain the shock lands and what the rest of the world's tea supply is doing at the same moment.

The chain a weather shock has to travel

A raindrop, or the absence of one, does not reach a price tag directly. It has to pass through several links first, and each one can amplify, absorb, or completely reverse what the weather did.

First comes the bush itself: rainfall and temperature set how much leaf grows and how fast. Then the pluck: a shortfall shows up as fewer kilograms carried to the factory gate, or as lower-quality leaf if the bush is stressed rather than starved outright. The factory turns green leaf into made tea through withering, rolling, oxidising, and firing, a process that cannot make up for a thin harvest; it can only grade honestly what arrived. Graded lots then go to auction, in Mombasa, Kolkata, Guwahati, or Colombo, where buyers bid against each other and against whatever tea from other countries is on offer that same week.

That last link is the one most people skip past, and it is the one that decides the outcome. A shock that cuts the leaf reaching the factory is a volume problem. A shock that washes out a road or shuts a factory without touching the bush much is a logistics problem. And a shock in one country lands on a global auction system where buyers can often simply bid on someone else's tea instead. Those are three different problems, and they do not move a price the same way.

A worker feeding fresh green tea leaves into a large steel rolling machine inside a tea factory, with steam and drying trays visible nearby.
Fresh leaf being fed into a rolling machine at a tea factory. Every drought or storm has to pass through this stage, garden to withering trough to auction lot, before it ever reaches a price.Quang Nguyen Vinh

Kenya, 2019: a clean volume shock, and the price still did not spike for growers

Kenya's clearest recent case of pure weather damage came in 2019. Tropical Cyclone Idai, which struck Mozambique and Zimbabwe hard in March that year, also pulled moisture away from East Africa's usual rain pattern, compounding a drought already under way. Kenyan tea production was running roughly 50 percent below the pace of the season before, and the country's full-year harvest was projected at 416 million kilograms, down from 492 million kilograms in 2018, a drop of about 15 percent, according to World Tea News. Plantations sent half their workers home on leave because there was not enough leaf to justify a full picking crew.

By the naive shortage story, a supply cut of that size should have driven the price up sharply. It did not, for the growers who mattered most. Smallholders, who produce roughly 60 percent of Kenya's tea, saw the price they actually received at auction fall by around 17 percent that season even as the harvest shrank. Auction prices at the time sat near $1.93 a kilogram, only about $0.50 above what it cost to produce the tea. A volume shock, in other words, does not automatically hand the grower a better price. It can just as easily leave the grower worse off, because a thinner harvest still has to clear at whatever price the world's buyers are willing to pay that week, and that price is set by more than one country's rainfall.

Kenya, 2025: less tea, and more money, in the same country

Six years later, Kenya supplied a near-mirror case, and it landed the opposite way. The Tea Board of Kenya's own performance data, reported by Kilimo News, shows national production falling 8.04 percent in 2025, landing at 550.37 million kilograms, down from 598.47 million the year before, with smallholder output down a steeper 13.17 percent. The board attributed the decline to erratic and poorly distributed rainfall.

A green tea plantation on rolling Kenyan highland hills under a partly cloudy sky, with eucalyptus trees marking the field edges.
A tea estate in Kenya's highlands. Kenya is the world's leading exporter of tea by volume, so a shock to its rains moves the global average price more than a shock almost anywhere else.Melvin Muhande

Yet the total marketed value of Kenya's crop rose 2 percent that year, to 218.79 billion Kenyan shillings, and export volume actually surged 9.81 percent, reaching 652.8 million kilograms, more tea shipped out than the country grew. The gap closed through carryover stock built up in better years, plus an auction absorption rate that improved to 73 percent of offered lots sold, from 55 percent in 2024. The average auction price itself barely moved, easing slightly to $2.15 a kilogram from $2.19. So the same country, hit by the same kind of shock twice in six years, produced two entirely different headline results: a worse payout for growers in 2019, and a flat price but a healthier sector top line in 2025, because in 2025 Kenya had inventory to draw on and buyers who wanted more tea than the season alone could supply. The rainfall told only part of the story either year.

Assam, 2025: a real drought, and a price that fell anyway

India's northeast supplied the sharpest contradiction of the naive story this year. Assam's monsoon arrived roughly 38 percent below its long-run average, according to Reuters reporting via Al Jazeera, part of a longer decline: rainfall in the district of Tinsukia has fallen by more than 250 millimetres since 1921, while minimum temperatures there have risen 1.2 degrees Celsius over the same span. "Shifts in temperature and rainfall patterns are no longer occasional anomalies. They are the new normal," Rupanjali Deb Baruah, a scientist at the Tea Research Association, told Reuters.

A woman in a headscarf plucking tender tea shoots in a green tea garden in Assam, with tall trees and other pickers visible in the background.
Plucking tea in Assam, where the second flush, the leaf that carries most of the crop's value, is picked in a window of only a few weeks.AMIT RANJAN

By late August 2025, unsold tea at the Guwahati Tea Auction Centre had climbed to 36 percent of the lots on offer, up from 23 percent the year before, and the average price realised for CTC (the cut, granular black tea that fills most tea bags) there had fallen by 26.55 rupees a kilogram, per EastMojo's reporting on a joint memorandum from three industry associations, the Assam Bought Leaf Tea Manufacturers Association, Bharatiya Cha Parishad, and the North Eastern Tea Association. That looks, at first glance, like the drought finally showing up in the price. But Assam's own output that August, per Tea Board of India data reported by the Assam Tribune, had slipped only marginally, 103.52 million kilograms against 104.46 million a year earlier, not the kind of collapse that would explain a drop at the auction on its own.

What the associations blamed instead was a flood of cheaper competing leaf: tea imports into India nearly doubled that season, to 50.14 million kilograms, up from 25.21 million the season before, including 17 million from Kenya and a further 15 million from Nepal. A dry monsoon was real, and it was already a familiar story in the region; a similar rainfall shortfall in 2021 left that year's second flush, Assam's most prized picking, without its usual character, according to a taster at the Tocklai Tea Research Institute quoted by Down To Earth. But the price move that actually landed on growers in 2025 traced more directly to what buyers could get from Kenya and Nepal that week than to how little rain had fallen on Assam that season.

Sri Lanka, 2025: a shock that barely touched the leaf

Cyclone Ditwah struck Sri Lanka in November 2025, and by the human measure it was severe: Sri Lanka's Disaster Management Centre confirmed more than 600 deaths, over 400,000 families affected, and more than 233,000 people still displaced weeks later, according to Tea Journey's reporting. By the measure of the tea supply chain, the damage was narrow. "None of the tea auction warehouses were harmed. Not a single roof was blown away," Anil Cooke, chairman of the Colombo Tea Traders Association, told the outlet, and almost every factory had generators to keep running through the power outages that followed.

Misty central highlands of Sri Lanka with terraced tea plantations on green hills and layered mountain ridges in the distance.
Sri Lanka's central highlands near Mandaramnuwara. Cyclone Ditwah, which struck in November 2025, hit the roads and workforce of the high grown districts hardest while leaving the lowland gardens that produce most of the national crop largely untouched.Asiri Dissanayaka

The damage that did occur was concentrated: Badulla district, in the high grown belt, lost an estimated 40 to 60 percent of tea bushes on some of its worst-hit estates, and more than 200 roads were left impassable. But the low country regions, which supply more than 60 percent of Sri Lanka's national harvest, were largely spared, and Sri Lanka's tea output for January through October 2025, before the cyclone struck, was already running 3.32 million kilograms ahead of the same period in 2024. A storm that dominated headlines for weeks, and that genuinely devastated the communities in its path, left the country's actual tea supply closer to intact than the news coverage of the disaster would suggest, because it hit a minority of the growing area, late in the season, and spared the warehouses and the auction floor entirely.

Why the same weather does not produce the same price twice

Put the four cases side by side and a pattern emerges, though it is not the one the shortage story predicts. The price response to one of these events depends on at least three things beyond the rainfall total itself: whether the shock cuts yield or only disrupts logistics, how much carryover stock the producing country has on hand to smooth over a thin harvest, and what the rest of the world's tea supply is doing at the same time.

That third factor is the one easiest to miss from inside a single country's own headlines. The World Bank's Commodity Markets Outlook, published in May 2025, put a figure on it at the global level: the three-auction average tea price fell 11 percent in the first quarter of 2025, driven almost entirely by a 38 percent seasonal fall at the Kolkata auction, while Colombo and Mombasa held roughly steady over the same stretch, because Sri Lankan supply was adequate even as India's was not. One producing country's shock, cushioned by another's surplus, is a genuinely different price event than the same shock landing when every major producer is short at once.

The bottom line

None of this is a forecast this publication is making about where the price goes next. It is what four real weather events, in three countries, over six years, actually did: a Kenyan drought that cut growers' pay in 2019, a near-identical Kenyan shortfall that left the sector better off in 2025, an Assam dry season whose price damage came mostly from Kenyan and Nepalese imports rather than the rain itself, and a Sri Lankan cyclone whose death toll ran past 600 while leaving the country's tea output almost unmarked. A drought or a storm is the first domino, not the whole chain. What happens between the bush and the buyer, stock levels, competing supply, and which link in the chain actually took the hit, decides where the price lands, and that is the part a headline about bad weather rarely has room to explain. For how that chain works end to end, see The Tea Auctions; for the longer-run modelling behind these shorter-run shocks, see How Much Does Climate Change Actually Cost the Tea Industry?.

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