Orthodox tea prices to firm up ahead of seasonal decline in Q4: ICRA

The drop happens because the quality of tea produced declines towards the end of the season subsequent to supply-demand situation

Prices of orthodox varieties of tea are likely to see a firmer trend in comparison to last year, while those of crush, tear, curl (CTC) tea are expected to be softer, says ratings agency ICRA.

In the first five months of the current financial year (April-August), prices of the orthodox variety have risen 15 per cent on the back of higher demand, primarily from Iran. Prices of the CTC variety, however, continued to be under pressure — those produced in bought leaf factories (BLF) fell by 10 per cent, while those produced in tea estates remained flat.

As a result, overall prices