The increased demand for Indian tea in the international market, coupled with lower domestic production this year, has propelled the tea prices by more than 25 per cent in the past few months.
The demand, however, continues to increase, thereby fuelling inflation. The tea variety that was available for Rs 80 per kg four months ago is now selling at Rs 100 a kg, and according to the traders, the prices are expected to rise further. The rise in demand in the international market is seen as the main reason for this.