Due to high demand from international Markets the orthodox tea prices have grown nearly by 18 percent.
The moderate selling Price of orthodox tea was about Rs.255.06 a kg at the recently ended sale 16 in Kolkata as compared to Rs.216.06 in the same period last year. The CTC prices were also raised nearly 3 percent at Rs.149.25 a kg at Sale 16.
According to the reports of Business line, the Secretary-General J.Kalyan Sundaram of Calcutta tea traders Association said that While the quantity of tea sold at auctions remains unchanged from last year, prices are ruling higher.
The firm demand from overseas markets mainly for the orthodox variety was one of the reasons for the hike in prices. Till the end of March prices of the first flush, tea was ruling Rs.15-20 a kg lower compared to the same period last year.
The prices, however, started improving last week. Data available on the tea Board of India website shows that for the week ending April 13, the average prices of CTC leaf and Sold at auction centers in Kolkata were ruling almost 28 percent higher at ₹147.38 a kg (₹114.92), while in Guwahati were 10 percent higher at ₹169.83 a kg (₹154.56).
The prices started improving last week, The data available on the Tea Board of India website shows that for the week ending April 13 the average price of CTC leaf and dust sold at auction centers in Kolkata were almost 28 percent higher at Rs.147.38 a kg while in Guwahati were 10 percent higher at Rs.169.83 a kg.
The Secretary of Indian Tea Association said that “The new season orthodox teas have just started coming into the market. There is a lot of export inquiries which shows the demand for Indian orthodox teas. This is reflecting in prices,” Higher prices would certainly come as a respite for producers who have been reeling under the pressure of rising costs outstripping price realizations.