Price of tea leaves hit record high of Rs 213 per kg
Kochi: The price of tea leaves has reached a record high of Rs 213 per kilogram. The average price is Rs 196.22 per kilogram.
There has been an increase of Rs 78.48 per kilogram in the last two months, a surge of 66.66 percent. On July 8, the price was just 117.74 per kg. If GST, packing charges and profit for sellers are taken into account, the retail price will increase further.
Reduced production in north India
The Coronavirus lockdown had hindered the plucking of fresh tea buds. This along with the floods in Assam resulted in severe reduction in tea leaves production in north India.
The price of Assam tea leaves has increased to Rs 300 – Rs 450 per kilogram. The increase in demand of tea leaves from Kerala and Tamil Nadu resulted in price hike.
Out of the 3.39 lakh kg of tea leaves brought for auction in Kochi on Tuesday, 3.34 lakh kg were sold. There was no auction last week due to Onam. Before that, 3.89 lakh kg out of 3.94 lakh kg of tea leaves was sold in the auction.
If the situation prevails, the price is likely to increase further. As the prices shot up, traders from Kerala are not active in auctions.