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Tea prices surges on hopes of higher prices

Share prices of tea companies surged in morning trade on Friday. McLeod Russel India rose 3.45 per cent or Rs 6 to Rs 180. Jayshree Tea and Industries climbed 4 per cent or Rs 3.05 to Rs 79.25 while Tata Global Beverages added 3.25 per cent or Rs 4.25 to Rs 135.15. Media reports said the ongoing drought in South Africa could hit tea harvest and consequently push up prices.

Tea prices will rise by 15 per cent plus from 2016 onwards, Kamal Baheti, CFO at McLeod Russel told news channel CNBC TV 18 on Wednesday, citing crop loss in Kenya and India. India's September tea output dropped 5.4 per cent year-on-year, the Tea Board said.

20 Nov, 2015

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