Tea prices higher by Rs 6-13/kg this season

The prices of new season tea, which hit auctions last week, are up Rs 6-13 a kg as against last season.

Prices at Kolkata auctions were higher by Rs 6 a kg. At Siliguri, the leaves were dearer by Rs 10 a kg while at Guwahati, prices were up by Rs 13 a kg.

At the Kolkata auctions, new season good Dooars were sold at Rs 100-120 a kg and best Assam brokens were at Rs 129-151 a kg, industry sources said.

The industry believes that while the prices reflected a buoyant market as they were not indicative of market trends.

Aditya Khaitan, chairman, Indian Tea Association, said, "March production was lower than lastyear but the exact drop is not know."

He, however, said that there was general buoyancy in the market and prices should remain firm.

Going forward, the industry expects a shortage of tea, which was likely to push prices upfurther. Khaitan said the domestic consumption was growing at 3.3 per cent for the last two to three years and to meet the internal demand, India would have to produce an additional 30-35 million kg of tea. Last year, 945 million kg were produced.

"Given that exports will increase on account of the political crisis in Kenya and internal demand will be at the same level, we could see a shortage of 20-35 million kg," he said.

Though industry sources said this was not the time for exports, enquiries had started pouring in.

Exports are expected to increase 10-20 million kg this year. Exports in the previous year stood at 152 million kg.