Winter Is Coming And So Are Increased Prices For Tea In India

Retail prices of tea is likely to go up by 11-15% as regional packet tea and loose tea makers are planning to hike up the prices by the second week of November. Thanks to the onset of winter, tea retailers are increasing prices, but this hike will also depend on the quality of tea.

Azam Monem, chairman at India Tea Association told Economic Times, “Prices of tea have firmed up at the auctions after the pan-India e-auction payment scheme has been sorted out by the Tea Board for the time being.” Some of the regional packet tea brands have already increased prices, while others are expected to do so in November. Monem added by saying, “Secondly, prices of teas at the bottom of the market, mostly from South India, have gone up 20-25%, which will leave an impact on all types of tea. Therefore, prices will remain firm for the next few weeks till the season closes in mid-December.”

Mumbai-based Sapat Tea has increased pack tea prices by 6% and CEO Nikhil Joshi spoke about this and said, “Prices are going up at auctions, so we have to pass it on to our customers. If prices increase in November, then we will have no choice but to pass it on to consumers. The pan-India e-auction has created a lot of problems during the peak season in September when quality tea arrives at the auctions.”

Packet tea players are expecting sales to pick up in winter, which is predicted to be colder than the previous years. “Winter sales should improve this year compared to last year when there was a drought,” added Monem. But packet tea brands aren’t the only ones increasing their prices, even loose tea brands are looking at an increase in prices. Camellia Twigs owner, Abhijeet Mazumdar said that the brand had raised their Darjeeling tea prices by 10-15%. “Quality tea price is expected to go up further in November when demand will increase for tea among Indians. Going ahead, there may be a further increase of 7-8% in quality teas,” he added.