Dust tea prices go up as Tata Global Beverages, HUL and Wagh Bakhri group join auctions

KOLKATA: The prices of dust tea have started moving up as Tata Global Beverages, HUL and Wagh Bakhri group have become active at the auctions. CTC tea prices, however, are coming down as poor quality has taken a toll on the prices. J Kalyansundaram, secretary of Calcutta Tea Traders Association, said: “Dust tea prices are increasing as companies are buying huge volumes at the auctions.

This buying trend will continue for sometime as they are building up stocks for festival and winter seasons .” The dust price is hovering around Rs 124 per kg but is lower compared to previous year when dust teas had garnered a price of Rs 135 per kg. “The situation was different in 2010.

The crop was low since pest attack and excessive rains had made a dent into the production,” said a tea trader. However, the industry is upset about the falling prices of CTC teas. CS Bedi, chairman of Indian Tea Association, said: “The current situation in the market place does not enthuse the producers with CTC prices at par with last year’s and falling by every auction.”

Traders say that prices of CTC tea had fallen last week due to low quality. The country’s tea production in July rose 8.2% to 133.27 million kg on account of improved weather condition but exports fell 8% to 15.26 million kg due to poor demand from the Middle East.