On the company's revised pricing strategy, MC Appaiah, COO, Duncan's Tea, said,...
Saturday, July 2, 2011
Tea majors hike prices to offset input costs
Mumbai: With tea production in the country declining and input costs rising over the last few years, a fresh round of price hike has begun in the R6,900-crore branded tea segment in India. To offset the rising input costs, major tea companies are raising prices by R 5-7 per kg. For instance, Duncan's Tea has hiked prices by R7 a kg for all its brands, while Tata Global Beverages (TGBL) has also raised prices of its select tea brands this month. Like Duncan's Tea, Royal Girnar and Society Tea have also raised prices to combat rise in commodity prices. Tea production in India fell to 966 million kgs in 2010 from 979 million kgs in 2009 and 981 million kgs in 2008. Production in Africa is also down by 39 million kgs, thus creating a global pressure on tea prices.