Goodricke sees 5% rise in tea prices on global shortage

The Goodricke Group Limited is expecting tea prices to increase by five per cent this year, on the back of the global shortage and strong internal demand.

A N Singh, managing director and CEO, GGL said, prices should increase by five per cent. "There is a drought in Kenya and Sri Lanka, coupled with a strong internal demand, prices should appreciate," he said. Singh was speaking on the sidelines of the company's annual general meeting.

Last year, GGL clocked in an average price of Rs 228.51 per kg for its Darjeeling teas compared to the auction average of Rs 175.36 per kg. Goodricke Dooars sold at Rs 99.70 per kg against the auction average of Rs 91.9 per kg while the company's Assam teas averaged at Rs 120.27 per kg against auction price of Rs 104.59 per kg.

Singh clarified that the five per cent appreciation was the expectation for teas in general and specific to Goodricke's teas. Total manufactured crop for the company was at 21.52 million kg for the year ended December 31, 2008, compared to 21.17 million kg in the previous year. This is the highest manufactured crop of the company.

P A Legatta, chairman, said, although the crop marginally declined the increase had been achieved from outsourced leaf.