Indian tea prices jump on thin supply.

MUMBAI: Tea prices jumped this week in India, the world’s second biggest producer, as supplies shrank due to a pest attack in the biggest producing region, while demand remained robust, dealers said on Friday.

“Compared to the corresponding period last year, the crop shortage in north India is around 3 million kg, and this is keeping the prices firm in the auctions,” said an official from J Thomas & Co Pvt Ltd, a leading tea broking house.

The country’s tea output is likely to fall in 2010/11 on adverse weather and a pest attack in the biggest growing area, which will hurt quality exports, a senior Tea Board official said earlier this month.

Crop has been affected by a pest attack in the northeast state of Assam, the biggest tea producer in the country.

“Prices like the last two weeks, continued to remain firm this week. Even the primary grades fetched good prices, largely due to the supply shortage,” said an official from tea broking firm, Paramount Tea Marketing Pvt Ltd.

Souce : thenews.com.pk