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Reading: Rs200 Hike in Tea: Pakistani Households Feel the Pinch
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Rising Tea Prices in Pakistan
PhotoNews Pakistan > Business > Rs200 Hike in Tea: Pakistani Households Feel the Pinch
Business

Rs200 Hike in Tea: Pakistani Households Feel the Pinch

Web Desk
By Web Desk Published August 22, 2023 2 Min Read
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In the backdrop of already escalating food prices and shrinking household incomes, consumers face another blow as tea rates surge. On Monday, both branded and loose tea saw a price hike: a Rs100 increase for 900-gram branded packs and a spike of around Rs200 per kg for loose tea. The continuous depreciation of the rupee, especially during the PDM government and the current interim setup, has significantly influenced the import cost of black tea.

Factors Behind the Increase

Since the advent of the caretaker government, the dollar rate has risen by 2.9pc, affecting tea prices. For instance, a 170-gram branded pack has jumped from Rs330 to Rs350. Zeeshan Maqsood of the FPCCI highlighted that the net weight difference in branded tea packages accounts for the price discrepancy. He warned of more potential hikes if the rupee’s depreciation persists and noted the rising diesel prices, which increase transportation costs.

Tea Consumption in Pakistan

According to the Pakistan Bureau of Statistics, there was a dip in the country’s tea imports and average per tonne price in the last fiscal year. However, Maqsood estimates that Pakistan consumes 360,000 tonnes of tea annually, suggesting a significant amount of tea enters the market through unofficial channels.

The general public is already grappling with inflating prices for daily essentials like milk, sugar, and bread, making breakfast an increasing financial strain for many households.

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