Tea shares surge; Rossell India, Goodricke Group, Jay Shree Tea up over 5%
Shares of tea companies have rallied by up to 17% on the bourses in intra-day trade on expectations that lower production may boost tea prices.
Rossell India, Goodricke Group, McLeod Russel India, Warren Tea, Jay Shree Tea Industries, Harrisons Malayalam and Tata Coffee among few were trading higher by more than 4% on the BSE. On comparison, the S&P BSE Sensex was up 0.52% at 33,535 at 01:13 PM.
Tea production in Assam, which accounts for over 50% of the annual production in the country, fell by 27% to 81.75 million kg (mkg) in September because of unseasonal torrential rain. While, the production in West Bengal’s Dooars region was dipped by 19% to 43 mkg in the same month.
A production shortfall in north India will result in a supply shortfall, and hence prices are expected to improve.
According to McLeod Russel, the world’s largest tea producer, prices in India have increased by Rs 5 a kg due to increased demand from both in domestic and export markets and lower production, the Business Standard report suggested. CLICK HERE TO READ FULL REPORT.