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Packet tea prices may rise by 5-10% in June

20 May 2011 Evaluate

As tea prices at the auction are touching the roof, the prices of packet tea are set to see an upward revision. Packeteers expect that the packet tea prices may rise by 5% to 10% in June - August period.

As per Federation of Indian Tea Traders Association, during an auction, tea prices were seen quoting at higher prices, which in turn may impact packet tea prices going ahead. The association feels that there will be 10% price rise per kg. The lower medium quality of tea which is currently priced at Rs 180 per kg may see an upward revision to Rs 200 per kg. In the same fashion tea priced at Rs 200 per kg may see price rise and will cost around Rs 220 per kg.

In the last quarter, tea companies have increased the prices. On May 10, 2011, Dunseri Tea increased tea prices by Rs 4 per kg and will review the price scenario in June-August period and take a call. It sells packet tea in Rajasthan under the brand name Lal Ghora and Kala Ghora.

In the Kolkata and Guwahati auction centre’s tea prices are ruling high at Rs 160 to Rs 230 per kg. Gujarat Tea Processors & Packers, which sells tea under the Wagh Bakri brand name, feels that any changes in prices will happen after June as the second flush tea will arrive from third week of May and continue till June. It had revised prices in February this year by Rs 12 a kg around 5% increase and any raw material cost increase in future it will pass it to its customer.

Andrew Yule which sells packet tea under the brand names Yule Tea-Gold and Yule Tea-Red for the premium segment and for the popular segment respectively will take its decision on the price front after the second flush tea comes to the market. The company which has got 15 tea estates within its fold will not immediately tamper with price and will wait for the market to react. It also informed that currently tea prices are ruling high at the auctions. Good quality teas are fetching additional Rs 20 to Rs 25 per kg compared to previous year's prices. In the similar way average teas are fetching more Rs 10 to Rs 15 per kg at the auctions.

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Packet tea prices may rise by 5-10% in June

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