Tea prices jump on thin supplies, local demand

MUMBAI: Tea prices jumped at last week's auction due to a sharp drop in supplies and good demand from local industry.

The CTC (crush-tear-curl) grade was sold at 141.72 rupees per kg, up 4.4 percent from the previous week's auction, while the dust variety jumped 7.9 percent to 137.57 rupees per kg.

"Supplies were down sharply as plucking has nearly stopped. Demand was good from local buyers, though quality wasn't very good," said a member of the Calcutta Tea Traders' Association.

Tea consumption rises in India during the winter months as people prefer it to cold drinks. Tea plucking in India usually picks up between July and October.