PRICES - 7:

MARGINAL GAIN IN TEA PRICES IN INDIAN AUCTIONS IN 2017

P S SUNDAR

                    There has been a marginal increase in the prices fetched by Indian teas at the auction centres in the country in the current calendar over 2016.

This happened despite a fall in prices in North Indian auction centres because of a sharp gain in South Indian auction centres, reveals our study of the market reports of the various auction centres and the latest data available with Tea Board.

Tea Prices up to February in North Indian auctions averaged ` 120.12 a kg against ` 122.13 in the same months of 2016.   This fall of ` 2.01 a kg marked a decline of 1.65 per cent.  This followed lower supplies due to winter closure of factories and the concomitant lower absorption.

In the same months, upcountry buyers stepped up their purchase at South Indian auctions to bridge the short supplies in North India and this helped South Indian tea prices to rise to an average of ` 114.93 a kg from ` 107.36 in 2016.   This increase of ` 7.57 a kg marked a gain of 7.05 per cent.

Consequently, the all-India average price at all auctions in the country rose marginally to ` 119.16 a kg from ` 118.27, marking a gain of just 0.75 per cent.

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