Commodities

Q1 Indian tea price rises 46%

P S SUNDAR Coonoor | Updated on April 30, 2021

In the first quarter (Jan-March) of current calendar (Q1), the prices of teas in the Indian auctions rose by a whopping 45.73 per cent over Q1 of 2020.

This happened because of the prices rising by ₹50.31 a kg – from ₹110.02 in Q1 last year to ₹160.33 a kg in Q1 this calendar, reveals our analysis of the latest data available with the Tea Board.

Trade was under pressure because of restrictions (although with relaxations) arising from the nation’s fight against Covid-19.

The increased demand arising from a general consciousness across the globe that tea helps to build immunity as also the rise in the sale of value-added teas including teas mixed with immunity boosters like turmeric, ginger, Ashwagandha, tulsi and other herbs led to a price rally.

Lower supply arising from reduced production due to unfavourable weather conditions also created a price-related bull-market.

In the North Indian auctions, prices rose to ₹166.26 a kg from ₹114.19 in Q1 of 2020. This increase of ₹52.07 marked a gain of 45.60 per cent.

South Indian auctions gained more. The average price rose to ₹145.33 a kg from ₹ 94.30 in Q1 of 2020, marking a rise of ₹51.03 or 54.12 per cent. There was no disruption in the conduct of the auctions during Q1 this year.

In general, each kg of tea sold in the Indian auctions in the first quarter fetched on an average ₹50-52 more than in Q1 of last year.

Published on April 30, 2021

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