Tea prices up in auction market

Guwahati, Jun 9: The tea industry in Asom has reasons to cheer as the tea prices in Guwahati Tea Auction Centre(GTAC) has shown an upward trend compared to previous years.

A source in the industry informed that the average price commanded by tea varieties in the auction center has increased to Rs 74 per kg so far this year, which is much better compared to last year's prices.

The average price of tea sold through the GTAC in 2004 was Rs 68 per kg, which slumped to Rs 61 per kg last year. The trend so far has been good and the industry is hoping for getting better prices for first time since the slump in the market started in 1999.

However, low production so far this year has been a cause for worry for the tea industry in the state. Lack of adequate rainfall affected the production in the beginning of the season this year and the industry is not optimistic about making up for the loss of production later in the year.

Tea output in the state was 420 million kg in 2004 which increased to 475 million kg last year. This year the production came down by ten million kg so far compared to the corresponding period last year. The rise in the prices in the auction market is may be because of shortfall in production.

However, the industry as a whole is worried over shrinkage in the overseas tea market and lack of growth in the domestic market where per capita tea consumption is just about 600 gm.

UNI