Prices of Indian tea have been on an upward swing at domestic auctions, but registered only marginal increases at global markets where they have been surpassed by teas from Kenya, Sri Lanka or even Bangladesh.On a global scale, Indian tea prices in 1997 have seen an odd 27 per cent increase over 1996, which is considerably lower than a 53 per cent increase in Colombo, a 42 per cent increase in Jakarta and a 43 per cent rise in Bangladesh.
Although Indian average tea prices at the London auctions have increased over the last year, the maximum gain was reaped by other countries like Kenya. The average London auction prices in 1997 were higher by 19 per cent over 1996 whereas the Indian price increase was at a lower 17 per cent.Indian teas in 1997 were placed better compared to 1996, a year when Indian prices underwent a marginal decrease of 0.24 per cent against the average tea prices that were up by 9.5 per cent.
The northward trend in 1996 prices worldwide was reinforced in 1997 with the shortfall inthe Kenyan crop. But increases in Indian tea prices were just about half that of Sri Lanka, one of the largest producers.
Latest figures reveal that India has exported 176.58 million kg of tea up to November 1997, compared to 146.35 million kg in 1996. In terms of value, the 1997 exports up to November are estimated at Rs 1,499.66 crore as against Rs 1,101.99 crore in 1996.
Rising tea prices have been a subject of concern among the trading class, but producers and exporters feel this rise cannot be termed unprecedented when compared on a global basis.
Domestic prices have seen an upswing, hence the question whether the rise has been really striking.
"There have been two earlier price rises before, once in 1981-82 and again in 1991-92. Hence the current price rise does not come as a new phenomenon", said a tea producer.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
