Tea prices continued to remain firm at the beginning of October as average all-India auction prices of the brew soared by around 36 per cent year-on-year.
Due to a drop in tea production, average North-India and South India auction prices in sale no. 40, which was held in the week beginning September 30, 2024, rose 32.53 and 54.78 per cent y-o-y to ₹255.20 and ₹166.10 per kg, respectively, according to data from Tea Board/NSEIT.
“Tea prices continue to remain firm in the auctions primarily due to a fall in tea production of almost 90 million kgs (mkg) till August this year compared with the same period last year,” Calcutta Tea Traders Association secretary Kalyan Sundaram told businessline.
Up 35% in Sept
The country’s total tea production during January-August this year stood at 734.54 mkg against 822.48 mkg during the same period last year. The fall in output was mainly due to adverse weather conditions and high pest attacks, among others.
Tea auctions in sale no. 42 are being held at both North India and South India auction centres this week. Sale no. 41 of Kolkata, Guwahati and Siliguri were dropped due to Puja holidays, according to the Calcutta Tea Traders Association.
Notably, tea prices at all-India auction centres rose in the range of around 35-38 per cent year-on-year (yoy) during September.
Average all-India prices during auctions held in the last week of September this year (in sale no. 39) was ₹238.96 per kg, which was up by around 35.33 per cent y-o-y compared with ₹176.57 per kg in the last week of September last year.
Average all-India prices during auctions held in the first week of September this year (in sale no. 36) stood at ₹237.39 per kg, which was higher by around 37.77 per cent y-o-y against ₹172.31 per kg in the first week of September 2023.
Total quantity of tea sold in sale nos 36 to 39 of 2024 in both North and South India auction centres fell to 64.98 mkg from 68.17 mkg in the same sale nos last year.