Tea companies may post better returns than 2019 despite drop in prices

Last year, companies reported higher profits even on lower volumes due to a rally in tea prices. But the fall in prices seen from June may impact margins

Last year, major tea companies performed well on the back of higher prices. However, a drop in prices over the past month and a half, is threatening to put a spanner in a repeat performance.

Tea prices started on a strong note this year with prices ruling higher than last year on the back of crop loss due to adverse weather conditions. After mid-June, however, prices started dropping, though they are still higher than 2019-levels for north Indian teas (which account for more than 80 per cent of total production).

According to figures available on J Thomas website, the auction