India's tea production predominantly comes from North & South India. India is a rich producer of CTC tea along with Kenya, while China is a major producer of Green tea and Sri Lanka and Indonesia produces orthodox tea. The drought like situation in the country's tea estates has affected production. Fall in production, rise in domestic consumption together ha...more

India's tea production predominantly comes from North & South India. India is a rich producer of CTC tea along with Kenya, while China is a major producer of Green tea and Sri Lanka and Indonesia produces orthodox tea. The drought like situation in the country's tea estates has affected production. Fall in production, rise in domestic consumption together have lead to spike in domestic tea prices. India is now increasing import of tea for blending with local tea for re-export to the global markets. As the brew gets stronger for the domestic tea producers in terms of rise in prices, they are investing in modernization and improving quality so as to consolidate gains and improve their global competitiveness. Tata Tea is not a major tea producer but a tea marketer, and so rising tea auction prices will affect it, unless it chooses to pass on the rise in costs to customers. Harrisons Malayalam, a South based plantation company with primary interests in tea and rubber, is part of the RPG group. The fundamentals of tea sector have improved with fall in production, rise in exports, gradual increase in consumption etc.  hide