TEA drinkers will have to shell out more for their cuppa from this month. Packet tea companies are all set to raise prices for the second time in 2009 as auction prices for good CTC and dust teas have witnessed a price hike of Rs 30-35 per kg from July this year. The price hike will vary between Rs 8-15 per kg, depending on the price movement of tea at the auctions. Talking to ET, Mr Harendra Shah, chairman of Federation of Indian Tea Traders’ Association (FAITTA) said: “The first price hike took place in the period between May to June, when a large section of the packet tea manufacturers had increased prices by Rs 20 per kg. Though, we had thought of increasing prices in July, we had to postpone it as the industry was divided on the issue. But, with tea prices inching upwards, we now have no other choice, but to increase prices.” Mr Shah, who is also the managing director of Girnar Group, said that his company has already increased prices this month. “For example, a 250 gm of Girnar Royal Cup, which earlier commanded a price of Rs 58 per 250 gm has now shot up to Rs 75.” Incidentally, most of the packet tea manufacturers are located in western India and in the current season they have emerged as strong players at the auctions. “The western India packeteers are buying heavily at the auctions, which has pushed up prices at the auctions,” said an official of Calcutta Tea Traders Association (CTTA). CK Dhanuka, chairman of Dhunseri Tea, feels that the price of packet tea will have to be increased gradually over a period of time. “It is true that the price of packet teas will be increased this month, but it will not be as high as Rs 20 per kg. For instance, we will increase prices of our tea by 4%.” Dhunseri Tea has three popular brands, Lal Ghora, Kala Ghora and Chhotelal, that are sold in western India. However, both packet tea manufacturers as well tea producers feel that prices will stabilise once the second flush teas are sold entirely. “The shortage of tea in the market has pushed up prices and this will continue till the end of second flush season. After that, the price of packet teas will also stabilise,” said Mr Aditya Khaitan, chairman of the Indian Tea Association (ITA).
--~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
