Tea prices likely to go up in 2012
By Mohsin Khan
KARACHI: The prices of different varieties of tea are likely to move up in early 2012 at local wholesale and retail markets on its increasing consumption among the consumers in winter season.
Traders said tea prices see a jump on the supply constraints in the market particularly in the beginning of every year with seasonal demand jump of the commodity however prices will be settling at a certain level in a couple of months.
According to an estimate the demand of tea will surge its import by 10 percent in the next couple of months, which will also reflect its impact on the prices at wholesale and retail levels.
The import of black tea increased 12 percent in the month of November to 8.4 million kilogrammes (kgs) from 7.5 million kgs in October due to winter season.
Besides, the import of green tea increased with much higher rate of 133 percent from 150,000 kgs in October to 350,000 kgs in November, Pakistan Tea Association (PTA) statistics said.
The black tea prices are currently varied at wholesale prices from Rs 360 per kg to Rs 460 per kg and green tea from Rs 350 per kg to Rs 450 per kg.
The prices of the commodity will see a jump of Rs 15 to Rs 50 per kg on different varies of tea at wholesale and retail levels. The prices on various brands are likely to see a slight increase also.
PTA Chairman Muhammad Hanif Janoo told Daily Times demand of tea is likely to see a quantum jump in couple of weeks with the arrival of winter season in most parts of the country.
The market will remain firm at present levels if the rupee remains at present level of $88 to $89, he said and added but prices will see a steep increase if greenback crosses the current level.
Pakistani market consumes 225,000 tonnes a year currently with handsome annual growth in imports and sales. The import of black tea is heavily carried out from different countries for meeting the local demand.
Traders import black tea from Kenya at average $3.25 per kg presently whereas the different variety of black tea is also imported from Vietnam from $1.15 per kg to $1.75 per kg.
Pakistan imports black tea from India ranging from $1.1 per kg for the lowest quality, $1.35 per kg medium and $1.55 per kg good quality of tea.
The green tea imports and demand have been on the rise and it is imported from Vietnam and Indonesia ranging from $1.5 per kg to $2.75 per kg varying qualitatively.