The tea industry of India is expecting a fall in the effective production by 120mn per kg this year. Though the weather conditions and various other aspects favor the production, but still the tea producers have made this prediction.

As per the revelation of a report, the prices of tea in the Indian market has increased due to a fall in the tea production in Jamaica by 37mn, which further resulted in a lower gross domestic production.

For the time being the shares of the Warren Tea have increased to Rs. 558.90, which is the highest jump in prices that the company had witnessed. Presently it is being sold at a price of 537.00, up by 4%, whereas, the sensex met a fall by 450 points in the morning but by the end of the day it was marked at Rs. 492.30 after opening at Rs. 505.00.

The shares of Harrisons Malayalam are trading at Rs. 69.85 and Assam Company at Rs. 14.00, down 4.45% and 3.31% respectively. "With consumption growing at a rate of 3-3.5%, there is a need for an additional 30 million kg of tea this year to meet this demand. This means that there will be an overall deficit of 120 million kg this year", estimated Aditya Khaitan, Managing Director of McLeod Russel India.