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The prices of teas in Indian auctions rose by massive 43.09% in 2020-21 over the previous fiscal.
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The All India Auction prices jumped to Rs 196.97/kg from Rs 137.65 in 2019-2020. This meant that on an average every kg fetched Rs 59.32 or 43.09 % more than the previous year.
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Tea auction is a means of disposing the teas produced by manufacturers to a wide range of buyers in a competitive manner for fair discovery of price.
North India saw more prominent increase in the tea auctions. Here, the average prices rose to Rs 216.36 per Kg from Rs 148.55 in 2019-20, marking a hike of Rs 61.81 or 45.65% while the south Indian auctions, fetched the country’s highest average price of Rs 230.90 per kg. The lowest price recorded at the Tea serve auctions was Rs 113.55.
Reasons for the price hike:
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The main reason for the hike in the prices of tea are attributed to the higher demand from domestic as well as export buyers.
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Previous year was a different year with Covid -19 pandemic on peak, Consumers around the world believed that drinking tea could boost immunity which would in turn help them to fight the corona virus. Hence, there was increase in the demand in all auction centers resulting in higher prices.
Impact after Covid:
The Tea industry will have to brace for the decline in the exports this year as compared to exports in 2020, due to availability of low cost varieties in the global market.
For the period from January to March this year, the exports fell by 13.23 % as against the corresponding period a year ago.
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