Prices in the tea auctions in the country have risen by as much as 31.07 per cent till September this calendar compared to the same period of 2019.
According to the latest data available with the Tea Board, the average price in Indian auctions in the three quarters of current calendar rose to ₹185.76 a kg from ₹141.73 during January-September 2019.
This meant that each kg on the average fetched as much as ₹44.03 more, marking a gain of 31.07 per cent.
The increase was sharper in North Indian auctions where the average price soared to ₹208.02 a kg from ₹153.48 in January-September 2019.
This meant that each kg in North Indian auctions fetched as much as ₹54.54 more, marking a gain of 35.54 per cent.
In the South Indian auctions, the average price rose to ₹123.71 a kg from ₹102.87 in January-September 2019, marking a gain of ₹ 20.84 a kg or 20.26 per cent.
Floods in Assam, West Bengal and Kerala disrupted the flow of tea from factories to the market place.
Besides, plantations in the North were closed for winter till February and by the time production commenced, Covid-induced lockdown as also adverse weather affected production there.
Subsequently, the easing of lockdown in many States increased trading activities and hence the demand for tea.
Reduced supplies and higher demand led the prices to rise in the auctions.