Consumption, high food inflation concern for tea industry: FAITTA chief
Sluggish growth in domestic consumption, rising food inflation and slow recovery of exports post the Covid pandemic are some of the challenges faced by the tea industry, a senior official said.
Tea producer associations and the Tea Board India have been concerned over the muted demand growth in the country, he said.
The remarks came from Sanjay Shah, chairman of the Federation of All India Tea Traders Association (FAITTA), during its 10th annual general meeting here on Saturday evening.
As retailers within the FAITTA fold, we are witnessing the market movements from close quarters. It is a fact that loose tea consumption has been giving way to packet tea, Shah said.
Rising levels of food inflation also remain a concern area, as it adversely impacts consumption, he said.
Given that incomes do not adjust as fast as prices, high inflation in essentials tend to adversely impact demand for non-essentials. Even within essentials, consumers may shift to lower priced non-premium products,