Indian tea auction prices have moved higher in the first half of the year compared to the same period last year, despite a higher production.
According to figures release by the Indian Tea Association (ITA), during January-June, the average price for North Indian tea was Rs 82.72 per kg, higher by 12.25 per kg while that for South Indian tea was Rs 57.71 per kg, higher by Rs 5.02 per kg. The average for all Indian teas was Rs 72.88 per kg, an increase of Rs 8.43 per kg.
Production during the same period was 345.7 million kg, an increase of 3.3 per cent. However, most of the increase has come from South India, which recorded an increase of 9.5 per cent while North India was higher by 0.3 per cent. Exports increased by 13.6 per cent to 87.4 million kg.
Industry representatives expect exports to pick up in the coming months as there is a dip in world production by 1.6 per cent. Kenya has recorded a 20.7 per cent dip in production, which is unlikely to recover in the second half of the year.