Peak tea production season this year will be better than last year : Kamal Baheti, CFO, McLeod Russel
Updated on: 10 Jun 2016
In a chat with ET Now, Kamal Baheti, CFO, McLeod RusselBSE -0.67 % says that the tea prices are trending higher due to higher quality available in the market.
ET Now: Tea prices have been showing a staggering up trend. What is leading to this?
Kamal Baheti: This is the best quality period for the tea industry. The traction is always on the higher side for the tea prices. Since there had been shortages in the last two years and the opening levels had not been that higher than what we expected, now since the quality had come and the demand is coming up, the prices have started moving up this time. We think that this trend will continue going forward during the peak season. The main months for the tea prices which will have a major impact on the overall profitability of the companies will be from July to October which is the peak production months.
ET Now: Do you believe that until the next key auctions that you mentioned July-October period, do you think tea prices will continue to trend higher?