Rs 9/kg Chinese teas leave cos jittery

THE CHINA fever is engulfing everyone. Not that many may have vouched to have to seen these unbelievably priced goods. Yet, the marketplace continues to be mesmerised.

The fear, surprisingly, is more palpable in the tea industry. Chinese teas are now filtering in with considerable ease. A top industry source said, "I have received three samples of Chinese teas from an importer priced between Rs 9-16 a kilogram."

"The tea is probably crap! But there are tea merchants who would not mind using small quantities in blends," he said.

The Indian tea industry today is clearly at cross roads. Globally it has taken a beating from competitors like Sri Lanka and Kenya. Domestically the situation is far from happy.

Although the home consumption is around 650 million kilograms, the annual growth rate is quite sluggish. Claims and counter claims notwithstanding, even the 3 per cent official growth rate looks unachievable.

The final nail in the coffin, of course, is the price line. For the past couple of years, the auction prices have often dwindled to levels never before.

The average prices in the last couple of years tells the whole story. While the average price all-India on a crop of 806 million kgs was around Rs 72, it hit rock bottom in 2000 at Rs 59 a kilogram.