Monday, October 12, 2015

Indian Tea Rising Prices

The cost of food overall has risen during this decade so have the prices of tea. Albeit the production cost of this leaf has not risen sharply but the marketing expenses involved and the social cost of production makes a major dent in the price chart. 

What is the social cost?

Well, this is a payment made besides the wages for labor welfare vis a vis education of children and the health of the workers. This rising cultivation cost has kept many gardens away from making a profit. 

India consumes almost 1000 million kgs of this product yearly. It has to import the leaves from countries like Kenya and Sri Lanka. But home production is riding very fast making it imperative to increase consumption here as well as increase exports in order to ride much above the break-even mark.    

The Tea Board of India is planning a series of advertisements in order to boost the storeable cold form or iced tea. The advantage this form offers is its attraction to a younger audience as well as the attractive packing.

Another advantage is that it is instant and does not require any preparation unlike
Iced Mint Tea

Lemon Iced Tea

Tea Garden

Chai.
It's cousin the hot beverage.  

Photo Courtesy: Wagh Bakri Tea Company 

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