Indian tea prices jump

Average tea prices in India, the world's second-biggest producer, extended gains at this week's auction on robust demand amid concerns over supplies from top producer Assam state. The CTC (crush-tear-curl) grade leaf was sold at 179.93 rupees per kg, up 5.6 percent from the previous auction, while prices of the dust grade surged 3.1 percent to 188.91 rupees per kg.
"Buyers are active as now it is more or less certain that this year's production would be lower than last year," said a Kolkata-based dealer. India's tea production in April dropped by a quarter from a year earlier to 56.77 million kg due to a drop in plucking in Assam following extreme dry weather. On Friday, shares of tea producer McLeod Russel rose 5.6 percent, while Jay Shree Tea and Industries gained 4.3 percent in a stable Mumbai market.