Tata Global Beverages Ltd, formerly known as Tata Tea Ltd is facing tough times because of the slump in the global tea prices. They are facing not only decreasing tea prices in the international markets but also on the domestic front.

The reason for this fall is the strong flush of tea supply in the market by tea from Assam.

The largest tea maker of India, Tata has seen substantial decrease. On the other hand, the price of raw tea has peaked up by Rs. 15-20 per kg in the last few months. At that time, the reason was the adverse impact of bad weather as well as pest attack on tea plantations in Assam. This led to severe fall in production during the month of May.

Talking about this, the Deputy Chief Executive Officer of Tata Global Beverages said that the in the last two weeks the trend has reveres and the prices are on for a decline. So, the second shipment of Assam quality tea is a major reason at the moment.

Rising production and supply in the international markets by Africa and Sri Lanka are also adding to the price woes.