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Major tea companies clock lower profits as prices fall, costs rise

A report by Icra said that tea prices remained strong in Q1FY22 and started sliding with the onset of the peak production months of the current year

Tea
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A report by ICRA said that tea prices remained strong in Q1FY22 and started sliding with the onset of the peak production months of the current year. Average prices at north Indian auction centres during H1FY22, were down by Rs 60 a kg (23 per cent)

Ishita Ayan Dutt Kolkata
Major tea companies clocked in lower profits in Q2FY22 compared to the year-ago period as they faced the twin challenges of a sharp drop in tea prices from last year’s record levels and a higher wage cost.

Last year, companies reported higher profits – even on lower volumes due to a widespread disruption caused by the Coronavirus (Covid-19) pandemic – as tea prices rallied. But as supply normalised from June, prices started dropping.

A report by ICRA said that tea prices remained strong in Q1FY22 and started sliding with the onset of the peak production months of the current year.

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First Published: Nov 19 2021 | 1:20 PM IST

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