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The year 2020 began on a dampening note for the Indian tea sector, with prices falling by ₹8.34 a kg, or 6.46 per cent, in January over January 2019, according to the data with Tea Board and information from auction centres.
In January, average prices at the Indian auctions dropped to ₹120.83 a kg from ₹129.17 in January 2019.
Poor demand on both export and domestic fronts mainly due to the global economic slowdown pulled down the prices. Exporters said they suffered from drained orders from Pakistan and Iran. Upcountry buyers complained of inadequate cash flow to invest in high-priced teas.
Besides, to avoid the piling of unsold stock, producers brought down their asking price. The first month of 2020 saw falling prices week after week.
South India suffered the maximum as the average price at the southern auction centres crashed to ₹95.85 a kg from ₹110.99 in January 2019, marking a loss of as much as ₹15.14 a kg, or 13.64 per cent.
North Indian auction average prices dropped to ₹125.93 a kg from ₹135.17 in January 2019, marking a decline of ₹9.24 a kg, or ₹6.84 per cent.
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