McLeod Russel, BBTC, other tea stocks surge on spike in prices amid floods, heatwave

In the north-eastern state of Assam, which accounts for more than half the country's output, over 2 million people have been affected by severe river flooding in July

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26 Aug, 2025 12:21

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Shares of most major tea producers surged on July 9 after weather-related events disrupted production during peak harvesting season in key areas, triggering a spike in prices.

Among the major stocks, Bombay Burmah Trading Corporation was trading at Rs 2,259.95, up by 12.62 percent on NSE at 11:40 am. The stock of the company, which has a market cap of Rs 15,768.1 crore, had touched its 52-week high of Rs 2,325 during the trading session, before paring some gains.

Shares of McLeod Russel India gained 10 percent and were trading at day’s high of Rs 32.24 apiece at 11:46 am on NSE.

Shares of Rossell India, which owns Rossell Tea, were trading at Rs 656.7, higher by 14.66 percent over the opening price.

Assam and other top tea producing regions were affected by floods and heatwaves during harvesting season, which has resulted in reduced output. This has driven the prices to the higher side, which could support beleaguered Indian tea industry. Tea producers have been struggling with rising production cost and a negligible hike in tea prices in the last 10 years.

"Extreme weather events are hurting tea production. Excessive heat in May, followed by ongoing flooding in Assam, are reducing output," said Prabhat Bezboruah, a senior tea planter and former chairman of India's Tea Board.

Bezboruah also said that ban on 20 pesticides by the Central government has also affected production.

Several other tea stocks also hit upper circuit during the early hours of trading.

Jayshree Tea and Industries, which is the third largest tea producer of the world, jumped 12.44 percent to Rs 127.73 on NSE. B and A Ltd was trading 5.72 percent higher at Rs 644.85 on NSE, James Warren was up 4.1 percent, Kanco Tea was up 13.13 percent, while Tyroon Tea Company was sitting at a solid gain of 15 percent.

India's tea production in May plunged more than 30 percent from a year earlier to 90.92 million kg, its lowest for that month in more than a decade, hurt by excessive heat and scant rainfall.

In the north-eastern state of Assam, which accounts for more than half the country's output, over 2 million people have been affected by severe river flooding in July.

The upside in tea prices started after a heatwave reduced production from April onwards amid good demand, said Kalyan Sundaram, secretary of the Calcutta Tea Traders' Association.

In the last week of June, average tea prices surged to Rs 217.53 per kg, marking a near 20 percent increase from a year before, according to data compiled by the Tea Board.

Tea production improved in June after good rainfall gave respite from the heatwave, but again flooding in July has limited plucking in many districts of Assam, said a Jorhat-based tea planter.

India produced a record 1.394 billion kg of tea in 2023, but in 2024 production could fall by around 100 million kg, said Bezboruah.

The production shortfall should drive prices significantly higher, but financially weak and indebted producers are struggling to bargain with powerful buyers in peak production months, said a Kolkata-based trader.

With inputs from Reuters