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BK Birla group outfit, Jay Shree Tea and Industries Ltd is expecting 24 per cent drop in domestic production in the first quarter of this fiscal. The company, however, claims to have covered the loss through higher price realisation.
According to Mr R.K. Ganeriwala, President and Secretary, the company’s domestic production may drop to 5.3 million kg (mkg) during April-June quarter against 7 mkg during the corresponding period last fiscal.
“The drop in production, is however, made up through Rs 53 a kg higher price realisation, higher than the industry average,” Mr D.P. Maheshwari, Managing Director, told reporters after the company’s annual general meeting here on Wednesday.
He is anticipating tea production to remain lower than the previous fiscal. Available data indicate that the country’s tea production is down by least 31 mkg during the January-June this year. The company is expecting one mkg increase in production from its estates in Uganda and Rwanda. Overseas tea production stood at around 5 mkg in 2011-12.
According to Mr Maheshwari, the company is expecting 15 per cent higher realisation in sugar price this fiscal. As in June this year, prices are up from Rs 28 a kg to to Rs 34 a kg.
“We hope the price to stabilise at around Rs 32-33 a kg,” he said. Sugar division contributes 17 per cent of the company’s turnover.
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