Tea industry getting into crisis mode

Bs_logoImage
Press Trust of India Coimbatore
Last Updated : Jul 17 2014 | 6:46 PM IST
Tea Industry in Southern parts of India has expressed concern about the declining prices of tea, saying industry was getting into a crisis mode once again due to lower price realisation and skyrocketing cost of production.
Despite a short fall of 22 million KG in all India production, prices in South India during the calendar year 2014, have dipped by Rs 14, vis-a-vis 2013, Peter Mathias, President, United Planters Association of Southern India, said today.
Mathias wondered why the general economics principle of supply and demand was not working out for tea.While there has been considerable reduction in the prices at the auction, prices of packet tea sold to consumers have not changed, he said.
If the trend continued, it will be difficult for many of the estates even to pay the wages and other benefits, on time, he lamented.
Mathias also expressed shock on the reported demand by tea dealers association to relax the import norms of tea to allow import of large quantity of tea.
The production has been growing at an average of more than four per cent over the last five years and there is absolutely no shortage of tea in India, he claimed.
UPASI wanted to further strengthen the Tea Distribution and Export Control Order, to ensure that even in the case of imports for re-exporters, only teas of high quality which meets all the stipulations of FSSAI as applicable to domestic producers are allowed, Mathias said.
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories

  • Over 30 subscriber-only stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jul 17 2014 | 6:46 PM IST