MUMBAI (Reuters): Tea prices in India, the world’s second biggest producer, rose at this week’s auction on improved demand, dealers said on Friday.
“Big players are taking positions as the quality produce has hit the market, which has pushed the prices up,” said a senior official at J. Thomas & Co, a leading tea-broking house.
Favourable weather during the winter in the growing areas of eastern India has improved output prospects for better quality tea varieties, dealers said.
Meanwhile, India’s tea output in April 2011 remained largely steady at 68.77 million kg, while exports fell by 11 percent to 11.36 million kg from 12.76 million kg a year ago, data with the state-run Tea Board showed.
India is the world’s second biggest producer of tea after China.
India exports CTC (crush, tear, curl) tea variety mainly to Egypt, Pakistan and the UK, and the premium orthodox variety to Iraq, Iran and Russia.
Price of CTC (crush-tear-curl) tea rose 2.84 percent at 132.71 rupees per kg, compared with 129.04 rupees at the previous weekly auction. Price of dust tea went up by 4.01 per cent to 123.24 rupees per kg from 118.48 rupees at the previous auction.