Goodricke bets on firm tea price:
Kolkata: Goodricke Group Limited expects tea prices to remain firm in the current year because of an additional demand of 22 million kg.
However, the company’s costs of production is increasing at the rate of 10 to 12 per cent annually.
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tic consumption growing at 3 per cent per annum, the production last year was around 790 million kg. Besides labour and allied social factors which comprise 60 per cent of our costs, fertiliser expenses have gone up by 30 per cent. Our average tea price hovered around Rs 89 per kg compared with Rs 70 per kg a year ago. But it is still far from Rs 99 per kg which was the best price achieved,” A.N. Singh, managing director (operations) and CEO of Goodricke Group Limited, said today.
The prices of Dooars, Darjeeling and orthodox tea have improved. The company, which has 15,000 hectares under cultivation, is looking to increase its orthodox production of five million kg.
Goodricke is not interested in acquiring closed gardens in Bengal as they do not have the required scale of production.
The tea manufacturer will spend around Rs 11 crore for replantation of tea bushes. The modernisation plan will be funded through internal accruals and debt.
Goodricke will not apply for the special purpose tea fund as the tea manufacturer feels that the cost of borrowing is lower than the interest rate of the fund.
+and+CEO.bmp)
tic consumption growing at 3 per cent per annum, the production last year was around 790 million kg. Besides labour and allied social factors which comprise 60 per cent of our costs, fertiliser expenses have gone up by 30 per cent. Our average tea price hovered around Rs 89 per kg compared with Rs 70 per kg a year ago. But it is still far from Rs 99 per kg which was the best price achieved,” A.N. Singh, managing director (operations) and CEO of Goodricke Group Limited, said today.
The prices of Dooars, Darjeeling and orthodox tea have improved. The company, which has 15,000 hectares under cultivation, is looking to increase its orthodox production of five million kg.
Goodricke is not interested in acquiring closed gardens in Bengal as they do not have the required scale of production.
The tea manufacturer will spend around Rs 11 crore for replantation of tea bushes. The modernisation plan will be funded through internal accruals and debt.
Goodricke will not apply for the special purpose tea fund as the tea manufacturer feels that the cost of borrowing is lower than the interest rate of the fund.
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