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 production cost of this leaf has not risen sharply but the marketing expenses involved and the social cost  of production makes a major dent on the price chart. 

What is social cost?

Well this is a payment made besides the wages for labor welfare vis a vis education of children and health of the workers. This and rising cultivation cost has kept many gardens away from making 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 the 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 store able cold form or iced tea. The advantage this form offers is its attraction for 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

its cousin the hot beverage.  

Photo Courtesy: Wagh Bakri Tea Company 

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