Even as production shortfall looms large before the Indian and global tea markets, trade sources expect the prices to remain firm at least for the present.
“Prices have gone up. The average rate is hovering around Rs 65 to 70 a kg. Quality teas are selling at above Rs 100-mark at the auctions,’’ said a market source.
Asked if the prices would move up further, the source maintained that the volumes were not there and the crop was less.
Meanwhile, the apex body of plantations in the South — The United Planters Association of Southern India (Upasi) confirmed the drop in crop production in South India. Upasi has estimated the production shortfall at 6 to 7 million kg during the first three months of 2012.
Crop production has been witnessing a slide from 2008. It had fallen from 246.9 million kg in 2008 to 244.1 mkg the following year; it further dipped to 243.4 m kg in 2010 and to 240.9 m kg in 2011.
Between January and March 2012, Upasi has estimated the drop in production at 6 to 7 mkg.