Chairman of Dhunseri Tea C K Dhanuka said tha the input costs had more than doubled during the last 10 years.
"It was becoming increasingly difficult for the industry to meet social commitments," he said. Although prices were better for the last 10 years, it should have been higher. "Though we are happy with the price rise," Dhanuka said.
Meanwhile, the Indian Tea Association (ITA), the apex body of tea growers in the country, expressed concern over the inadequate rise in tea prices at the auctions. Sources in ITA said that although tea was not considered an essential commodity, the price rise at the auctions was nothing to worry about since the increase was not in sync with the rise in input costs.
According to ITA, the average auction prices during the current year was also below the 1998 prices. In 1998, auction prices had hit the roof in the history of the industry.
Echoing the same view, Director of McLeod Russel Kamal Baheti said that prices at the auctions this year was definitely better than the last year.
Dhanuka said that the industry had been bleeding for the last so many years. Last year, the average auction prices dipped as low to Rs 72 a kg. This year, the average auction prices increased by almost Rs 10 a kg.
Industry circles felt that tea prices would firm up more since domestic consumption was buoyant and the reversing trend in exports. For the first time in 2008, tea exports increased 20.42 per cent in March over the same period in 2007.
Steps to increase exports had also been complemented by Tea Board looking for newer destinations like Egypt to send shipments. With production levels likely to remain stagnant, the industry was hopeful that 2008 would bring cheer to the cuppa for stakeholders.
