Production for the new season has started and initial signs showed that market response was quite well, said DP Maheshwari, MD and CEO of Jayshree Tea, adding that the company expects better prices in the new season.
Tea production saw a steep decline in January, with North India seeing the biggest fall. "There was a shortage of around 10 million kilograms year-on-year (YoY) for the year 2018 and in January we have lost further 5 million because in January also there was no production in north India," added Maheshwari.
"So there is total 15 million shortage in production and 30 million is the normal demand every year increasing in demand. So 45 million kilogram as on today is sought in the pipeline," he said.
Maheshwari said Jayshree Tea's production will increase by at least 12.5 million kg compared to the last year. “Our sales were low because the market was a bit sluggish and there was a drop in production but that has been recouped now," he said.