Tea Stocks Surge On Hopes Of Further Price Increase

Tea stocks outperformed the broader markets on Thursday, tracking an upward trend in prices of tea. Shares of Assam Co, Harrisons Malayam, Jayshree Tea and Industries, McLeod Russel were up between 1.5-9 per cent each. 

Kamal Kishore Baheti, whole-time director at McLeod Russel India told NDTV Profit that tea prices are now Rs 5-Rs 7 higher per kg compared to last year. (Watch)

"As compared to what the prices have been for the opening season, which is March and April, May prices have definitely gone up...the trend is on the higher side," he added. 

Mr Baheti expects tea prices to firm up further in the coming months. 

"As we get into the peak season (July-October), whereby we produce 60 per cent of our total production, the prices will continue to be strong, may be Rs 10-Rs 15 higher compared to the similar period last year," Mr Baheti added. 

He further said that inventory position is currently low due to shortage of production last year, which is also supporting prices. 

Assam Co closed 8.7 per cent higher, while Harrisons Malayam ended 3.15 per cent higher. McLeod Russel shares closed 0.78 per cent up. 

In comparison, the broader Nifty ended 0.84 per cent lower.