Tea stocks in demand

Shares of 10 tea companies rose by 0.52% to 13.51% at 11:45 IST on BSE on reports that India may face a shortage in tea production.

Harrisons Malayalam (up 13.51%), Assam Company (India) (up 8.84%), Jay Shree Tea & Industries (up 6.91%), Warren Tea (up 6.79%), Asian Tea & Exports (up 5.77%), McLeod Russel India (up 3.95%), Duncans Industries (up 3.25%), Goodricke Group (up 3.21%), Diana Tea (up 1.31%) and Tata Global Beverages (up 0.52%), edged higher.

The S&P BSE Sensex was down 116.93 points, or 0.46% at 25,413.18.

Jay Shree Tea & Industries' managing director, D P Maheshwari, was quoted by the media as saying that he expected a shortage of 50-55 million kilograms of tea in India. He maintained that while he expects prices to go by about Rs 10 per kilogram (kg), costs too had risen by about the same price.

McLeod Russel India's chief financial officer, Kamal Baheti, told the media that since October 2015, prices have increased by Rs 10 per kg. The price is expected to increase further by another Rs 10, he added.

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