Lower supplies likely to lift tea prices 10-15%

Consumers may have to pay about 10-15% more for tea soon as wholesale prices rise on the back of a faltering supply. "There is a shortage of tea in the country. We think prices of good premium teas will go up by Rs20 per kg to Rs 210-Rs 220 per kg. Similarly, low-end teas will go up by Rs15 per kg to Rs100. But there will hardly be any appreciation in orthodox tea prices. At the retail end, we see prices to go up as well but it will largely depend on companies and buyers who are operating at the auctions," Indian Tea Association chairman CS Bedi said. Dhunseri, one of the large players in western India and sells under the brand name Lal Ghora and Kala Ghorahas, plans to increase prices. "Within the next two months, our packet tea prices will increase by 10%," said Dhunseri Tea chairman CK Dhanuka.

Source: Economic Times