London, Aug 25 - Tea prices appear unlikely to climb higher after soaring to record highs in Kenya last week, Manuja Peiris, chief executive of the London-based International Tea Committee said on Tuesday.
Tea prices in Kenya, the world's leading exporter of black tea, hit record levels last week on drought fears and buying ahead of the Muslim holy month of Ramadan.
"Looking at the fact that the North Indian crops are bound to be heavy in the second half of the year and perhaps the panic buying before Ramadan should be over...it is very difficult to expect prices to go up any further," Peiris said.
"But having said that it might remain somewhat volatile," he told Reuters television.
Islamic countries build stocks of commodities ahead of Ramadan, which began on Friday, and little trading is conducted during the holiest month in the Muslim calendar.
Sicily Kariuki, managing director of the Tea Board of Kenya, told Reuters television that tea production in Kenya would likely fall by about 20 million kg this year, compared with year earlier levels, to around 325 million kg.
She said production should, however, rebound if forecasts for good rains in the first quarter of 2010 are realised.
"We do anticipate about a 10 percent increase in the first quarter (of 2010) compared with how we fared in the current year," she said.