India’s Darjeeling tea prices take a hit.
Recent reports state that – India’s famous export – Darjeeling tea prices have gone down by Rs. 100 per KG when compared to last year’s figures. This time, the production of tea was down by almost 20%. Prices have significantly plummeted as as the offtake of the second flush teas went down at the auctions.
Industry analysts say that there might be a further drop in the months to come. The recent drop in prices has prompted Iran to initiate talks with tea planters to import Darjeeling tea. Officials at the Darjeeling tea auction centre said that Tata Global Beverages and HUL had lifted 29 percent of the total offerings in 2012-13. Officials added, “In 2013-14, the offtake has dwindled to 17 per cent.”
In the month of June, 30,84,540 kg of Darjeeling tea was offered at the Kolkata Auctions out of which only 52,006 was sold. The same trend was repeated in the following weeks. Even during the last sale, 178,213 kgs were offered, but only 73,846 was sold. So the prices have dropped by Rs. 100 per kg as per the trends seen in the last few auctions depending on the variety.
Sheo Sankar Bagaria, the Chairman of the Darjeeling Tea Association said that the European buyers are not present and that Tata Global and HUL are not picking up good volumes of tea from the auctions.
Photo Credits: All About India