World's largest tea planter, McLeod Russel India Ltd, fetched an average premium in the first quarter of Rs 12.59 a kg over the average price of the corresponding quarter in the previous fiscal. In the first quarter, it produced 45 lakh kg more at 222 lakh kg (177 lakh kg). The average selling price in the first quarter was Rs 152.56 a kg.

This pushed the standalone net profit by 98 per cent to Rs 37.33 crore (Rs 18.85 crore).

Demand growth of around 3 per cent and lower opening stock due to production shortfall last year saw the new season begin with Rs 10-15 a kg premium for the quality tea.

“Lower inventory in India, production shortfall in Kenya and other African countries and strong consumption growth should have positive impact on prices during 2011. Costs per kg are expected to go up marginally,” McLeod Russel said.

During the first quarter to June 30, the total export of the company was 1.5 million kg.

Production from its own leaf was higher by 33 lakh kg on improved weather during the foregone quarter. Output from bought leaf was also higher, by around 12 lakh kg.

In 2010-11, owing to crop loss McLeod Russel had produced 749 lakh kg teas against 772 lakh kg in the previous financial year. The average price realisation of the BM Khaitan group company, however, had been at Rs 145.11 a kg, higher than the North Indian average of Rs 124.18. During the FY 2011, the city-headquartered company exported 210 lakh kg of tea. The average yield per hectare was also higher than the industry average.

During the six months ended June 30, its Vietnamese subsidiary Phu Ben Tea Co achieved a total production of 1.44 million kg (1.42 million kg). McLeod Russel Uganda Ltd, the other overseas plantation subsidiary, in the first six months of the calendar year produced 7.3 million kg (8.7 million kg)

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