Tea likely to get costlier this year
Tea drinkers may have to shell out more as cost of the commodity is likely to go up due to poor crop this year.india Updated: Apr 14, 2009 23:35 IST
Tea drinkers may have to shell out more as cost of the commodity is likely to go up due to poor crop this year.
"On account of an imbalance in the global demand-supply scenario, tea prices are expected to rise in 2009," economic watchdog, Centre for Monitoring of Indian Economy (CMIE) said in its monthly review of the country's economy.
The price of tea has already gone up by 32.1 per cent to Rs 77.6 in March this year compared to the same month last year.
CMIE said tea output remained stagnant at 21,570 tonnes in January this year compared to the same month last year.
It expects tea production to be badly hit by the drought-like situation in north and south India and pest attack in Assam, which accounts for half of the total all-India tea output.
"After growing by 3.8 per cent in 2008, we expect tea year 2009 to end with a marginal rise of 1.9 per cent in output," CMIE said.
Crop year for tea starts in January.
The average price for tea went up to Rs 102.74 per kg in October last.