Kolkata: The new season for North Indian teas grown in Assam, Dooars and Darjeeling is due to start shortly and the tea industry hopes that it will open with higher average price compared with last year.
The price, it is estimated, will be up at least by Rs 10 per kg on an average, if not more.
“The market is going to be strong for both CTC and orthodox varieties,” observe tea industry sources.
Several reasons are being given for the probable higher price of tea in the coming season.
First, the absence of any carryover stock. As the industry sources point out, in next two weeks, no auctions are going to be held in any of the three North Indian auction centres at Kolkata, Guwahati and Siliguri due to non-availability of stocks.
No teas are available with the packeteers either, it is pointed out.
A couple of auctions were cancelled in past few weeks also.
Second, an estimated 10 per cent shortfall in the Kenyan crop due to unfavourable weather condition has pushed up the prices of the Kenyan varieties. If the trend persists, there will be a drop in Kenyan exports and to that extent the export demand for the Indian teas, particularly the CTC variety, will rise, it is felt.
Crop size
Finally, the domestic demand for teas continues to be buoyant at an average growth rate of 3-3.5 per cent. Which means an additional demand for an estimated 30 million kg will be created this year. Unless the local availability improves substantially, there will be pressure on the prices.
It is too early to predict the size of the North Indian crop right now. The Dooars and Darjeeling and lower Assam crops may be delayed due to dry spell. But not so in upper Assam where there has been some rainfall. A clear picture is likely to emerge from around the second week of April.
On the other hand, the rainfall has been widespread in the South.
The average price of the orthodox varieties in the South has been on the higher side, add industry sources.
The price, it is estimated, will be up at least by Rs 10 per kg on an average, if not more.
“The market is going to be strong for both CTC and orthodox varieties,” observe tea industry sources.
Several reasons are being given for the probable higher price of tea in the coming season.
First, the absence of any carryover stock. As the industry sources point out, in next two weeks, no auctions are going to be held in any of the three North Indian auction centres at Kolkata, Guwahati and Siliguri due to non-availability of stocks.
No teas are available with the packeteers either, it is pointed out.
A couple of auctions were cancelled in past few weeks also.
Second, an estimated 10 per cent shortfall in the Kenyan crop due to unfavourable weather condition has pushed up the prices of the Kenyan varieties. If the trend persists, there will be a drop in Kenyan exports and to that extent the export demand for the Indian teas, particularly the CTC variety, will rise, it is felt.
Crop size
Finally, the domestic demand for teas continues to be buoyant at an average growth rate of 3-3.5 per cent. Which means an additional demand for an estimated 30 million kg will be created this year. Unless the local availability improves substantially, there will be pressure on the prices.
It is too early to predict the size of the North Indian crop right now. The Dooars and Darjeeling and lower Assam crops may be delayed due to dry spell. But not so in upper Assam where there has been some rainfall. A clear picture is likely to emerge from around the second week of April.
On the other hand, the rainfall has been widespread in the South.
The average price of the orthodox varieties in the South has been on the higher side, add industry sources.
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