Muted prices, rising costs to make brew tepid for tea firms this year
Tea auction prices are seen range-bound this year, with marginal improvement to Rs 147 per kilogram, given the price-sensitive market, according to Crisil Research.
Tea auction,
Rs 145-146 per kg- Auctions are likely to close calendar 2018 on average.
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3-4 per cent higher- It would be, compared with a CAGR of 1.4 per cent logged over calendar 2012-2017.
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140-170 bps- Profit margins of tea planters likely to contract this fiscal.
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100 bps- Margins may drop in fiscal 2020.
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200-240 bps- Margins of integrated players expected to contract this fiscal.
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3.2 per cent CAGR of tea production in India over 2012-2017.
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1.7 per cent CAGR- Rise in consumption during the period.
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