The Hindu Business Line : Prices looking up at auctions, says Tea Board chief

EVEN while the tea sector continues to grumble about its grim prospects, the Tea Board Chairman, Mr N.K. Das, said prices had started to look up in the last few auctions.

Briefing presspersons after kick-starting the Internet-based auction system at the Tea Trade Association here, Mr Das said the overall prices quoted at auctions were encouraging.

"The average price moved to Rs 64.48 per kg for the week ended May 15, as against Rs 54.72/kg during the corresponding week of the earlier year. Every auction centre recorded an upward movement in price level in the last few trades," Mr Das said. He attributed this upward movement to lower production of teas, increased exports, improved quality and better understanding of the stock position.

On export prospects, Mr Das said India and Iraq had signed an agreement that included better linkage of purchases and packaging.

The market for value-added teas is encouraging in the Far East. He said the US and Australian markets offered enormous potential and there was a lot of scope in the North African markets too.

On exports to Pakistan, Mr Das conceded that prospects were good, but the country was facing stiff competition from Kenya on pricing.

One-to-one connection was very important, especially because India was into bulk exports, Mr Das said and pointed out that the Tea Board took delegations from time to time to different countries to enable the exporter understand the markets better. He said the board had applied for a geo-national registration for Darjeeling tea, as teas from other markets were generally marketed as `Darjeeling tea' in some markets abroad.

To a query on the quality of India tea, the Tea Board Chairman said a big unit was coming up in Kolkata for processing clean tea. At the electronic auction, Coimbatore-based Girnar Exports bought the first lot of dust tea, while New Tea Company Ltd took up the first leaf lot.

Trade sources said prices were up by Re1 to Rs 2 per kg.

More Stories on : Tea | E-Commerce & E-Business

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
NatSyn Flora to set up cut flower project in Sikkim

Prices looking up at auctions, says Tea Board chief

Tea auction goes online in Coimbatore

Palm oil may rise in correction

Wheat, coarse grains production recovers

`IPSTA's experience can't be matched by others'

We want to make Indian farmers global players: Pawar