Retail prices of packaged tea are moving northwards, thanks to rise in tea prices in auction centres and increase in transportation and other costs. Maharashtra and Gujarat are major consumption centres for tea. | |
| Harendra Shah, director, Girnar Food and Beverages, maker of Girnar Tea, said: "Prices of tea at auction centres are rising and transport cost, tax burden are also increasing. We have recently raised prices of our packaged tea by Rs 8 per kg average." |
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| Girnar Tea prices went up by Rs 8 for low medium quality from Rs 130 to Rs 138 per kg. For medium quality, prices went up by Rs 10 from Rs 175 Rs 185 from October 1. |
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| The prices of top quality Royal Cup brand went up by Rs 8 to Rs 220 per kg. Girnar has raised its prices after more than three years. Hashmukh Rai & Co is also expected to increase the prices of its Society tea. |
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| HLL and Tata Tea have already raised their prices. The national players may raise their prices again, said market observer. |
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| According to a Mumbai-based trader, over the last six to eight weeks average prices have gone up by Rs 10 to Rs 15 per kg at auction centres. Now Assam leaf tea [best quality] prices are in the range of Rs 75 to Rs 90 per kg, up from Rs 65 to Rs 75, six weeks ago. Dooars tea prices are now Rs 65 to Rs 80 per kg. Prices in the southern market are also up by Rs 15 per kg. |
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| Sources said short supply of good quality tea at auction centres led to the price hike. This is now being reflected at the retail prices of tea. While the branded tea prices have gone up, there is no impact on the loose tea prices as the traders blend low quality tea to keep the prices low. |
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| Shah of Girner Tea said, "The demand for export is growing. Particularly with the recent failure of tea crop in Kenya, importers are more dependent on India for supply of tea." |
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| According to the traders, the new crop arrivals will end in December and prices will harden next calendar year once the season is over. |
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| At present, demand from Maharashtra and Gujarat is low on account of rising prices foodgrain and pulses as well as heavy floods in major parts of state. |
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| If foodgrain consumption goes down by 10 per cent, tea consumption falls sharply. |
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