Domestic/Tea
Tea prices are on a downslide owing to poor export offtake and an oversupply in the domestic market.
Average prices during January-June this year were at Rs 57.22 as compared to Rs 52.11 during the same period last year.
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However, industry sources said that the gap between the two prices was more than Rs 10 at the beginning of the year and was gradually diminishing over the months.
North Indian prices were around Rs 63.77 as compared to Rs 57.83 upto mid-May. But, gap had reduced from Rs 12 at the beginning of the year to Rs 5.94. South Indian prices were depressed from last year. Prices were around Rs 41.80 as compared to Rs 42.20 in the same period last year.
Industry representatives said that there was an excess of 57 million kg crop in the domestic market. Exports were down by 21 million kg while crop was up by 36 million kg till May. Imports were at 2.49 million kg as compared to 4.97 million kg.
Industry representatives said, lack of strong export demand was behind the crisis.