Tea Rates Increase In World Sales - Sep 05 , 2008

Coonoor: Teas sold via all auction centres across the globe, except Malawi's Limbe, have got higher prices in the first half of calendar 2008 over the corresponding period of 2007, an analysis of Market Reports and information available with Tea Board reveals. Indonesian teas at Jakarta sales got the highest increase of 44.12 per cent to average $1.47 a kg. Kenyan teas at Mombassa auctions registered the next highest increase of 35.58 per cent, to rule at $2.21 a k g. Sri Lankan teas at Colombo auctions increased 32.46 per cent to average $3.02. Bangladesh teas at Chittagong auctions got 28.70 per cent more to rule $1.48. Indian teas at the eight auction centres registered an increase of 19.21 per cent to rule $1.80.

Coonoor Tea Auctions To See Low Volume - Aug 14 , 2008

Coonoor: An analysis of the catalogues of various brokers' shows that volume offered for sale No: 33 of the auctions of Coonoor Tea Trade Association (CTTA) concluding on Aug 14 totals 11.22 lakh kg. There will be no auction on Aug 15 because of the Independence Day. This is the lowest volume of the last 18 weeks excepting April 24 when the volume was 11.08 lakh kg. This week's volume is lower than last week's offer by as much as 1.33 lakh kg. Fresh arrivals remain to be high. Of the 11.22 lakh kg, fresh arrivals total as much as 11.03 lakh kg. The balance comprises teas continuing unsold in previous auctions. Again, as much as 10.67 lakh kg belong to CTC variety and only 0.55 lakh kg, orthodox variety. In the leaf counter, only 0.21 lakh kg belong to orthodox while 7.78 lakh kg, CTC.

India Witnessed The Export Of 87.4 Million Kg Of Tea - Aug 11 , 2008

Kolkata: Between January and June, India witnessed the export of 87.4 million kg (mkg) of tea (44.7 mkg North Indian and 42.7 mkg South Indian varieties), rise by 10.4 mkg over the same period of 2007, when exports were to the tune of 77 mkg, comprising 38.2 mkg of North Indian and 38.8 mkg of South Indian varieties, according to statistics released by the Indian Tea Association (ITA).

The earnings from exports in first six months, at Rs 883.32 crore, showed an increase of Rs 116.57 crore over Rs 766.75 crore earned in the same period of last year.

Between April and June (first quarter of the current fiscal), tea exports were 36.5 mkg (14.4 mkg of North India and 22.1 mkg of South Indian varieties) compared with 32.6 mkg (15.3 mkg of North Indian and 17.3 mkg of South Indian varieties), or up by 3.9 mkg. Between January and May, ITA figures suggest, the country imported 6.56 mkg of tea worth Rs 46.74 crore compared with 4.89 mkg worth Rs 36.72 crore in the same period of 2007.

Nepal supplied 2.12 mkg (1.27 mkg in the same period last year), Indonesia 1.44 mkg (0.88 mkg), Kenya 1.24 mkg (1.11 mkg), China 0.36 mkg (0.28 mkg) and Argentina 0.35 mkg (0.37 mkg).

Tea Exporters Gain Rs 32cr More - July 8, 2008

Coonoor: Tea exporters have gained Rs 32 crore more in the first four months of the current calendar over last year. The increasing trend in earnings saw in March continued in April. Even as the exporters took a higher price averaging Rs 101.14 a kg, against Rs 100.72 in April 2007, importers picked up a higher volume of 11.9 million kg against 8.9 million kg last April. Consequently, exporters earned Rs 120 crore, as much as Rs 30 crore more than April 2007.

Kochi Tea Auction See Steady Trend - July 4, 2008

Kochi: There was better demand from exporters for orthodox leaf tea and also for smaller CTC leaf varieties at the Kochi Tea Auction. Blenders were fairly active at the dust auction while interstate purchasers were less active at the leaf tea auction. There was 8,59,000 kg of dust tea on offer where CTC prices eased by Rs 2-3. Medium CTC prices continued barely firm. Orthodox high grown dust remained steady to dearer, while medium orthodox rates eased by Re 1 to Rs 2. Best CTC dust got Rs 67-78, medium CTC quoted Rs 60-65 and below medium was at Rs 55-60. High grown BOPD quoted Rs 90-100, medium BOPD got Rs 52-56 and secondaries ranged at Rs 50-52.

The International Inventories Of Tea Are At Record Low

Kolkata: The tea market particularly for quality tea will remain buoyant in the next three months because of tight supply position both in international and domestic markets, according to C K Dhanuka, Chairman of Dhunseri Tea & Industries Ltd, and also the past Chairman of Indian Tea Association and Tea Association of India.

Currently, the international inventories of tea are at record low and there is no cushion left with the traders and blenders to bring down the level further. With this tight inventory position, the market has become very sensitive and starts reacting sharply with any short term imbalance (either shortage or excess), observes Dhanuka in a statement.

The lower crops in North India, Kenya and several other producing countries in first quarter of 2008 pushed up the global prices.

The demand for second flush this year, he feels, is going to be extremely strong and price may touch a record high. This will happen because of the additional pressure in demand likely to be from those traders who had maintained lower inventories and also from exporters because of lower crop reported from Kenya.

Global demand

Dhanuka estimates that the global demand for tea will rise by 100 million kg annually for next five years but the supply is unlikely to match the projected increase in demand.

The imposition of minimum quality standard as ISO 3720, MRL (maximum residue limit which relates to the residue of chemicals used in tea plants) etc. as a means of improving of quality of tea will reduce the availability of tea in the world market.

Replantation, rejuvenation of old bushes and producing more of orthodox variety will also affect the production of tea in India.

“It will not be wise to expect 500 million kg or more of additional tea in the global market in the next five years,” Dhanuka adds.

Govt. Allowed Export-Oriented Units (Eous) To Sell More ‘Instant Tea’

New Delhi: In a boost to the domestic tea vending industry, the government has allowed export-oriented units (EoUs) to sell more ‘instant tea’ in the domestic market to meet the growing demand in the country.

There is a strong demand for instant tea due to increased consumer preference for convenient, instant food and beverage products.

The Commerce Ministry has now increased the cap on EoU sales of ‘instant tea’ in the domestic tariff area (DTA) from the existing 20 per cent of free-on-board value of exports to 30 per cent. This will improve availability of ‘instant tea’ for tea vending industry, which has been importing (instant tea) from Sri Lanka and other foreign markets, say industry players.

So far, instant tea has largely been exported by tea majors including Tata Tea, Hindustan Unilever and Nestle.

The ‘instant tea’ exports have recently seen some slowdown due to a decline in export orders on account of the appreciation of the rupee against the dollar.

However, the domestic tea vending industry, valued at about Rs 400 crore, has been growing at 35 per cent compounded annual growth rate (CAGR) in the recent years, say industry observers.

“This is a progressive step. It will not affect the domestic tea industry as EoUs are still not permitted to sell tea (instant tea excluded) in the domestic market. The tea growers will continue to be protected. The cap should have been raised to 50 per cent as available for a number of products,” industry sources said.

In fact, seeing the growth prospects for this industry and also its employment creation potential, the Finance Minister, P Chidambaram, had in Budget 2008-09 announced full excise duty exemptions on tea/coffee pre-mixes.

Currently, EoUs are permitted to sell up to 50 per cent of their free-on-board (f.o.b.) value of exports in the DTA. There are, however, exceptions to this norm. The EoUs are not allowed to sell motor cars, tea (excluding instant tea) and alcoholic beverages in DTA.

Moran Tea Company Ltd No Longer Exists

Kolkata: The Moran Tea Company (India ) Ltd no longer exists. The process of its merger into McLeod Russel became complete last Friday when McLeod Russel filed with the Registrar of Companies the certified copy of the order passed by Calcutta High Court on April 16, 2008, approving the scheme of amalgamation.

According to the scheme of amalgamation, the shareholders of Moran Tea will get four McLeod Russel shares of Rs 5 each for every share of Rs 10 Moran Tea held. The erstwhile Moran Tea had four gardens, all in Assam, with a total production of 4.2 million kg.

Following amalgamation, the total number of gardens under McLeod Russel will rise to 55 and the total production to 75 million kg, according to a spokesman for McLeod Russel.

Mixed Trend At Kochi Tea Sale

Kochi: Mixed trends were evident at the Kochi Tea Auction where exporters operated within a limit on bolder dust tea varieties.

At the leaf tea auction, the presence of exporters and inter-State buyers were evident who helped to sustain higher price levels. There was 11,23,000 kg of dust tea on offer at the auction where clean black teas found firm demand.

Other grades shed a rupee while orthodox dusts remained generally steady. Best CTC dust varieties fetched Rs 60-70, medium CTC quoted Rs 54-58 and below medium was at Rs 50-53. High grown BOPD quoted Rs 90-104 and secondaries ranged at Rs 43-44.

High grown whole leaf and flowery varieties were steady, while brokens and fannings were firm. Medium leaf varieties remained firm to dearer with the active interest of exporters and inter-State buyers. Best Nilgiri varieties quoted Rs 82-95, medium orthodox fetched Rs 75-90 and plain orthodox was at Rs 51-57. Best CTC leaf quoted Rs 60-67 and medium CTC ranged at Rs 50-58.

Top Prices

In the dust segment, Kodanad CLBOPD fetched the top price at Rs 104 followed by Pasuparai SFD at Rs 80, Pasuparai FD at Rs 78 and Sreeram SFD at Rs 74.

In the leaf category Chamraj FOP fetched the top price at Rs 128, followed by Craigmore FOP at Rs 124, Havukal FOP at Rs 116 and Kairbetta TGFOP at Rs 115.

Coonoor Tea Auctions High

Coonoor: Offers continue to rise for the auctions of Coonoor Tea Trade Association (CTTA) with the brokers’ catalogues for sale no: 20 to take place on Thursday and Friday, showing a volume larger-than-average sale in an auction in the last two years.

In all, 13.11 lakh kg have been catalogued. This is 15,000 kg more than last week.

The volume is as much as 110 per cent more than the 6.23 lakh kg offered this time last year.

Fresh arrivals account for 11.76 lakh kg out of the offer of 13.11 lakh kg. The balance comprises teas unsold in previous auctions. Fresh arrivals are rising because of the favourable rains, which have activated the growth in tea bushes.

According to the UPASI Tea Research Foundation, the cumulative rainfall till April in all agro-climatic zones in Nilgiris had been more than last year as also the decennial average. In April, tea production in its member estates in Nilgiris increased by 52.7 per cent over April 2007.

Orthodox teas

Of the 13.11 lakh kg on offer, as much as 8.95 lakh kg belong to the leaf grades and 4.16 lakh kg belong to the dust grades.

Fair Demand At Coimbatore Tea Sales

Coimbatore: The offerings of tea at the weekly auction held here on Friday totaled 6.03 lakh kg with leaf grades accounting for 2.02 lakh kg and the balance 4.01 lakh kg comprising dust.

Limited quantity of orthodox leaf on offer met with fair demand. CIS exporters lent fair support.

Limited quantity of orthodox dust grades sold around last.

HUL selective

There was fair demand for the CTC leaf. The best teas remained irregular around last, the bolder grades and plainer sorts quoted lower by Re 1 and the better liquoring smaller brokens and fannings ruled dearer. There were some withdrawals on bolder brokens. While HUL was selective, exporters lent fair support.

Good liquoring popular CTC dust and better medium grades ruled steady. HUL operated selectively.

The best CTC teas moved in the Rs 57 – Rs 64 price band, while the medium orthodox dust was slightly lower ranging between Rs 50 and Rs 57. Good CTC dust teas quoted between Rs 65 and Rs 68.

Tea Exports May Increase 20 M Kg This Fiscal

Kolkata: India’s tea exports in the current fiscal should increase at least by 20 million kg, according to Aditya Khaitan, Chairman of Indian Tea Association (ITA) and Managing Director of McLeod Russel India Ltd, the world’s largest tea producing company.

Choice before buyers

“There is a global shortfall and the major buyers are looking towards India,” Khaitan told Business Line. With Kenyan crop having suffered in past few months, the countries such as the UK, Pakistan and Egypt, all traditional buyers of the African teas, were now turning to India.

The choice before them was either to pay too high a price at the Mombasa auction or opt for the Indian CTC, he said.

The rupee-US dollar parity rate, however, continued to be a matter of concern. “But then, the overseas demand is buoyant and, it appears, will continue to be so,” Khaitan said, expressing hope that Pakistan’s demand for North India tea would rise, despite the shipment problem.

The demand for orthodox tea too, was likely to increase as the prices in the Colombo auction were high.

No carryover stock

Khaitan, however, was not sure if the orthodox production in India would increase significantly in a situation where the demand for the CTC would be strong.

In 2006 also, the Kenyan tea production was hit by drought but the impact of it was not so much felt in India where there was a surplus crop with substantial carryover stocks. The situation this year was different in the sense India too, was running short with no carryover stock, he said.

The size of crop this year, according to the ITA Chairman, would be too early to estimate right now. The picture would be clear around July-August. “Even in the best of times, India’s production never increased by more than 20 million kg (mkg),” he said pointing out that the demand-supply gap would persist this year even if there was a bumper crop which was unlikely. The March crop in North India failed.

Growing demand

With the domestic demand increasing at three to 3.3 per cent, thus, creating an additional demand of about 30 mkg every year and with no carryover stock, the domestic price of tea too would be on the high side by all indications. It would be at least another three years before increased production, resulting from rejuvenation and replantation programme now in progress, would materialise.

“The producers currently having a judicious mix of export and domestic markets thus, stand to benefit most in the current situation,” he said.

The tea industry, Khaitan said, suffered a lot in the past few years when the prices did not even cover the cost of production. New threshold prices, therefore, are need of the hour.

“Fortunately, the prices are showing signs of firming up, both within the country and outside,” he said. “We in McLeod Russel are fully geared to meet the market demand.”

Nilgiri Tea Output Up 20%

Coonoor: In the first quarter of calendar 2008, tea production in the Nilgiris, the largest growing district in the South, is up by 20 per cent over the five-year mean, according to the UPASI Tea Research Foundation.

The biggest increase occurred in March when the production rose by 20.5 per cent over March 2007.

Production in its members units between January and March rose to 3.61 million kg (mkg) from 2.77 mkg in the corresponding period last year. The five-year mean was 2.99 mkg.

In March, production rose to 1.57 mkg from 1.31 mkg. The five-year mean for the month was 1.25 mkg.

Assam Co To Launch 4 Tea Brands, Tap CIS Markets

Kolkata: Assam Company Ltd proposes to launch four varieties of branded tea, according to company sources.

“We are re-entering the packet tea business with Jumbo and Cheetah (regular) as well as Assam Gold and First Gold (premium),” according to Abhay Chowdhry, Director (Finance) and CFO of the company. “We expect to introduce tea bags to tap the growing CIS markets.”

The company intends to make inroads into railway and airline consumer base for tea through branded varieties.

It is hoped that the re-entry into the packet tea segment will enable the company to offer a larger proportion of sales from bulk to branded with a corresponding increase in realisations.

“In the tea business, we recognise that we have the advantage of volumes but we will be able to leverage the true potential locked in our business only if we enhance value in every conceivable way,” Chowdhry observes in the company’s annual report for 2006.

The company has eight retail outlets of tea bars named Camelia and proposes to diversify into aromatic and medicinal varieties of herbal plants to be used as flavouring agent in tea and other culinary preparations.

A move is afoot also to enter into tea tourism by promoting Salonah and Greenwood tea estates as attractive tourist destinations.

Assam Company runs 19 tea estates covering more than 13,500 hectares in Assam and produces about 16 million kg of tea annually.

The tea business accounts for more than 96 per cent of the company’s revenue (Rs 149.5 crore in December 2006), and more than 68 per cent of net profit (Rs 7.45 crore in December 2006).

Other activities

The company’s non-tea activities cover exploration of oil and gas, not only in India but also outside, and development of a hydrocarbon SEZ in Gujarat. The commercial production of oil and gas commenced in the Amguri block in Assam, and also in one of wells in the US exploration block.

For the first time the oil business generated a revenue of about Rs 5 crore in 2006. For the development of hydrocarbon SEZ entailing an investment of Rs 20,000 crore with the target of completion by January 2010, the company has signed an MoU with Gujarat State petroleum Corporation Ltd.

Isro, IIT, C-DAC To Brew Tea Story

The Tea Board has tied up with Indian Space Research Organisation (Isro) for advance mapping of tea plantations spread across India through remote sensing techniques. The Board has also inked collaborations with IIT Kharagpur and Centre for Development of Advance Computing for upgrading tea processing technologies.

This is under the technological and HR initiatives of the Board for which Rs 120 crore have been allocated by the Union commerce ministry. Funds for workers healthcare and education have increased four times in the XIth Plan.

Basudeb Banerjee, chairman, Tea Board, told DNA Money, "Isro with specialised remote sensing technology will help us compiling a complete cadastral data. Being an integrated management tool to furnish all kinds of data for the tea industry, the entire exercise will be a dynamic one. The project initiation will be across 5 lakh hectares."

The entire exercise to be conducted by Geographic Information Systems (GIS) will profile garden-wise data and indicate areas for new plantations and alternate cropping. All other kinds of data including soil, forest cover and land maps will be superimposed to give a complete picture of the gardens.

Warning signals of red spider mite could be indicated with tea bushes turning red through remote sensing technology.

Mapping is important for getting funds under the Special Purpose Tea Fund.

"We are planning to set up a branch of the Bangalore-based Indian Institute of Planning and Management in Jorhat in Assam. A host of HR initiatives for plantation workers' are being worked out. Almost 50% of the funds allocated for HR purposes in the Plan period will go towards healthcare of tea workers. The balance will go towards education of the workers' children and training of workers," Banerjee said.

Any effort towards helping these workers is significant especially during difficult times that the Indian agro economy is facing, feel industry observers.

Homedale Witnesses Record Price At Coonoor Tea Sales

Coonoor: A new record was made at the auctions of the Coonoor Tea Trade Association last week when the RD grade of Homedale Tea Factory, sold by Global Tea Brokers, fetched Rs 112 a kg. Among other teas from purchased-leaf factories, Darmona Estate got Rs 91 a kg, Greenview Estate and Selva Ganapathy Estate Rs 85, Shanthi Supreme Rs 84, Hittakkal Estate Rs 83, Deepika Supreme Rs 82, Kannavarai Estate and Professor Rs 81 and Vigneshwar Estate Rs 80. Among orthodox teas from the corporate sector, Havukal got Rs 121 a kg, followed by Chamraj at Rs 120, Curzon Rs 104, Prammas Rs 103, Glendale Rs 101, and Kodanaad, Tiger Hill and Kairbetta Rs 100. On the export front, Pakistan bought cleaner, blacker, smaller brokens and fannings, paying up to Rs 56 a kg.

Better Prospects Could Turn Tea Stocks Hot

Chennai: One of the industries that is looking forward to a better performance this year is the tea sector. There are quite a few factors that are seen helping the industry, which has been in trouble for the last couple of years.

In the view of the Food and Agricultural Organisation (FAO), global tea prices are expected to maintain their upward trend this year. This will be on the heels of a tighter supply, particularly due to lower production in Kenya.

FAO estimates

Kenya is currently seen as the primary force behind better prices. Kenya is facing two problems. One, on the political front, where the unrest in that country has affected tea estates and violence in some parts has even led to burning of the gardens. The second factor is drought in the growing areas that have already affected production. The FAO estimates that production in the African country could be lower by as much as 10 per cent.

What adds strength to the tea sector at home is the domestic scenario. Though exports last year were low, the situation has been salvaged to some extent by a lower production. Growth in consumption has also been helping matters, as the carryover stocks from 2007 are projected at a minimum.

Last year, exports were estimated to have declined to less than 160 million kg (mkg) from 218.73 mkg during the previous year. But production is also estimated to have decreased to 944.7 mkg from 955.9 mkg in 2006. The difference between exports and production is estimated to be domestic retention.

With growth in domestic consumption seen at 3-4 per cent, the carryover stocks are projected to be negligible.

Payment problems

With exports seen increasing this year, what with the Centre and industry going all out to woo Egypt and Islamic nations, there is all the more reason for tea prices to rise. If India can solve the payment problems in Iraq, then the scope for the industry can really improve.

It is possible that tea companies during the January-March quarter could report better results and probably, even better during April-June since they could have bagged more orders during the Kenyan strife. One report has projected the fall in the production during the first quarter at 35 per cent.

Since the beginning of the year, prices at the auctions have ruled higher than last year and a firm trend is being witnessed.

Now, let’s look at what has been happening to the tea stocks this year. A glance shows that for investors, who have bought these stocks, there has been nothing to cheer. All tea stocks, without any prejudice, have declined since the beginning of this year — in line with the general meltdown of the equity markets.

For example, Tata Tea stocks, which touched Rs 1,000 on January 3, has slid to Rs 832.85 on April 4. Similarly, Warren tea shares are ruling at Rs 67.75 down from Rs 72 at the beginning of the year and Dhunseri Tea at Rs 98.50, sharply lower from Rs 165 at the start of the year. The stocks have not reacted even to the news of some of the companies announcing an increase in the prices of their products.

In fact, all tea stocks are way down from their 52-week high, offering some scope for investors. However, the one point of worry could be the Centre’s policies, especially the way it has panicked in dealing with soaring inflation. But going by FAO outlook, there is something for the industry to look forward to and, in turn, for investors who hold the tea stocks.

7-Week High Offer At Coonoor Tea Sales

Coonoor: A volume of 9.11 lakh kgs has been catalogued for the auctions of the Coonoor Tea Trade Association (CTTA) to take place here on Thursday and Friday.

This is the highest volume of the last seven weeks. It is 5,000 kgs more than the offer of last week. But it is as much as 1.36 lakh kgs more than the offer this time last year.

Fresh teas are said to be 8.28 lakh kgs out of the offer of 9.11 lakh kgs. The balance comprises teas remaining unsold in previous auctions.

Of the 9.11 lakh kgs, as much as 6.13 lakh kgs belong to the leaf grades and 2.98 lakh kgs belong to the dust grades.

Again, as much as 8.42 lakh kgs belong to CTC variety and only 0.69 lakh kgs, orthodox variety.

Orthodox’s share

The proportion of orthodox continues to be low in both the leaf and dust grades. In the leaf counter, only 0.19 lakh kgs belong to the orthodox while 5.94 lakh kgs, CTC. Among the dusts, only 0.50 lakh kgs belong to the orthodox while 2.48 lakh kgs, CTC.

Auctioneers said prices could firm up if the demand from upcountry buyers matches that of the exporters. Last week, export purchase was more pronounced as the domestic buyers took to cash-spread accounting adjustments for the fiscal year end.

6-Week High Offer At Coonoor Tea Auctions

Coonoor: An analysis of the catalogues of the various brokers shows that the volume offered for Sale No 13 of the auctions of the Coonoor Tea Trade Association (CTTA) to be held here on Thursday and Friday is the highest of the last six weeks.

In all, 9.06 lakh kgs would be offered. This is some 79,000 kgs more than last week’s offer. However, it is as much as 1.23 lakh kgs lower than the offer this time last year.

Fresh arrivals are said to account for 8.46 lakh kgs of the 9.06 lakh kgs on offer. The balance comprises teas remaining unsold in the previous auctions.

Of the total, as much as 6.21 lakh kgs belong to the leaf grades and 2.85 lakh kgs belong to the dust grades. Again, as much as 8.44 lakh kgs belong to CTC variety and only 0.62 lakh kgs to orthodox variety.

Low on orthodox

The proportion of orthodox continues to be low in both the leaf and dust grades. In the leaf counter, only 0.24 lakh kgs belong to the orthodox while 5.97 lakh kgs, CTC. Among the dusts, 0.38 lakh kgs belong to the orthodox while 2.47 lakh kgs, CTC.

Tea E-Auction Launch ‘Within This Year’

Kolkata: Scope of the futures market in tea was discussed at a high-level meeting held at the Tea Board office here on Wednesday. Basudeb Banerjee, Chairman of Tea Board; the Deputy Chairman, Roshni Sen; and member of the Forward Markets Commission, Rajeev Agarwal, were present.

Representatives of the National Commodity & Derivatives Exchange, Multi Commodity Exchange of India Ltd, Indian Tea Association, Tea Association of India, Calcutta Tea Traders Association and Indian Merchant Tea Exporters’ Federation also attended the meeting.

Later talking to Business Line, Agarwal said the benefits of having the futures market in tea were discussed at the meeting. “The exercise was on sensitising the tea industry about the futures market and explaining the possibility of launching futures contracts in tea,” Agarwal said. “The futures market can be of help to the tea industry in price discovery, i.e., the discovery of the right price, and in price risk management.”

However, the representatives of the tea and trade industry explained the difficulties in designing a contract for representative varieties of tea because of wide variations in grades. Also, it was pointed out, the production of tea being dependent on the vagaries of nature, it might be difficult to guarantee the promised quality and quantity at the time of delivery.

The possibility of designing a tea index was also discussed, Agarwal said, pointing out that the index should cover certain specific varieties of tea which would reflect the price movement and also provide opportunities for hedging to the stakeholders.

The Tea Board Chairman felt that the commissioning of e-auction in tea would expedite the process of futures trading in tea. The e-auction, he said, would be launched within this year.