Your daily cup of tea may soon cost more, with the shortfall in production expected to push up prices this year, a Tea Board official said on Tuesday. “Prices should go up. We had stopped plucking in many states during December to February, which has led to a production shortfall of 25 million kg,” Tea Board’s Director of Tea Promotion S Soundararajan said, PTI reported.
The low production is going to impact the prices positively for the tea manufacturers, he said, however, adding that last year, tea prices did not go up as much as was expected earlier. Nevertheless, this might not be good news for consumers.
Pegging 2018’s tea production at 1,350 million kg, Soundararajan added that the board expects the figure to be similar in 2019. On a year-on-year basis, the domestic consumption has seen a growth of over 2 per cent, he told PTI.
The Tea Board will also focus on quality and compliance with the new Food Safety and Standards Authority of India (FSSAI) norms, he said.
Meanwhile, the prices of major tea brands in India saw a hike around July 2018. The increase ranged from 4-10%.
As of now, the prices of popular tea brands in India are-
Red Label CTC is retailing for Rs 430 for 100 gms bag. Red Label’s Natural care box is selling for Rs 260 for a 500 gms pack. Tajmahal CTC Box of 250 gms is selling for Rs 142. Agni Ctc Leaves is selling for Rs 220 per 1 kg box. Tata’s CTC Gold brand tea is available for Rs 440 per kg pack and Wagh Bakri Leaf Tea – Premium 1 kg box is retailing at Rs 425, per a Kotak Consumer Staples report.
India is the second largest producer of tea in the world and makes up 23-26% of global production.