Goodricke sees firm tea prices this year

Tea major Goodricke Group Ltd expects firm prices this year, even though realisations may not be high owing to higher cost. Speaking on the sidelines of the company's annual general meeting, A N Singh, managing director (operations) and chief executive officer (CEO), said, there was 22 million kg of extra demand this year and prices would be firm.

The industry has commenced 2008 on an encouraging note with a lower carry over stock. The shortfall in crop and higher domestic consumption were expected to lead to improved prices for quality teas.

But Singh pointed out that cost was also increasing 10-12 per cent a year and the major cost head was labour and social cost.

Moreover, fertiliser cost had also increased 30 per cent this year. Goodricke's total manufactured crop increased by about 10 per cent to 21.2 million kg for the year ended December 31, 2007. Goodricke was also hoping that instant tea demand would pick up in 2008 in India and also in international markets.

P A Legatt, chairman, Goodricke Group Ltd, said, the group was facing competition in instant tea in Africa and China but good growth was expected from the packet tea and instant tea segments. Earlier addressing the shareholders, Legatt said, the instant tea plant had a difficult year. However, there were encouraging orders in hand as well as positive enquiries.

"The instant tea plant provides an excellent facility for value addition to tea. It is one of its kind in eastern India and is in the heart of tea growing areas in north Bengal. It holds patent rights on hot water soluble instant tea and cold water soluble instant tea in some of the major tea producing /consuming countries," he said.